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This is my third attempt and I am wondering now whether I should take P7 instead of P4. There is now way I can crack Q1. The information was so much that I couldn’t analysed and figured out in time. I didn’t realise that I should have used MM in Q2 instead of CAPM. That’s why I was stuck because Rf(4.5%) is less than Rm (4%) so I could not get Be to ungear. Q3 & Q5 were OK but that is not enough to pass this paper.
Hi!
Can you send me the link for P4 notes?
My email address is lapthu@yahoo.co.uk.
Many thanks!I just read again the article about valuing the company using the BSM model but stil unable to figure out the exercise price which was indicated by the examiner is the value of a zero coupond bond. We were only told that it was a floating loan at a yield of 5% plus 3% premium. It is also the cost of debt? On Bob Ryan’s article we know the coupon rate together with cost of debt so we can work out the PV of the debt.
I only read the article twice like with all the remaining articles before entering the exam and forgot most of it by the time going over the question. I wish there was at least one question in the revision kit asking the similar type of things so I could practice few times over and remember what to do in the exam.
This is my last paper so I did put a lot of time into study hoping I will be qualied after 8 long years but it might not happen now. I failed last time and I accepted it because I did not understand the subject. I thought I was well prepared this time but it looks like not.