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Q2 was 9 marks, then 10 followed by 6.
I thought it was a good Q but ran out of time as did it last 🙁
Got half way through b and missed c completely so 11marks missed out completely!!!
I used PI and explained that since they used soft capital rationing then they should take the projects with the highest PI but if money invested was not an issue to them then they should look to do E as it earned the highest value for sh/holders. I also mentioned pecking order theory as a way to evaluate how to fund the 3 projects with positive NPV.
Hi, I stupidly started with Q4 as it was ‘fresh’ from doing it the night before.
I ended up with losses on both occasions of int rate rising or dropping. My effective rates were 6.2% and 7.1%. I kept thinking that you are supposed to come back to the spot rate at the start + the additional rate applicable to the company with a small difference for basis risk.
I kept going over it to see where I went wrong and ran out of time to finish everything else (1hr and 15mins wasted on Q4!)
This was my 5th attempt at this exam! Q1 and Q2 were very easy but as I ran out of time I skipped things and shoved in pretend assumptions to explain why I missed parts. Lucy if I get 40% 🙁