[joe]

I had the same exam. E commerce, big data, ethics, performance pyramid

With the performance pyramid, I tried to do what the question asked me to do.

Which was to assess how their Corporate Steering Wheel addresses the 9 headers of the performance pyramid.

I just went through each measure in the Corporate Steering Wheel and explained what it covered in the Performance Pyramid and explained which ones were not covered. I tried to add some things about the performance pyramid such as how each level supports the level above. I also tried to link it back to their financial objective of maximising shareholder value, I suggusted a better measure of this and briefly explained the advantages and disadvantages of the new measure. I might lose some professional marks for that, as the question didnt really ask for a recommendation but I felt it was relevant.

I too found the exam quite straightforward compared to past exams and am a bit anxious I’ve failed to notice something in the case studies or in the questions.

This is my final exam so hope I pass! Good luck to everyone!

[joe]

@solomama said:
Hello,
I had a question on the exam like:

Convertable 9.5% loans, redeemable after 5 year with 7%redemption yield. They can be converted into 10 shares. Current share price 12$. What is the premium per share?

As I recollected correct..

Answers:
1) 0.45 2) 12.45 3) 124 4) 4.51

How should I calculate it?

what I did was calcaluate the PV of the loan not and conversion. which was £124.51 I think.

deduct the current MV of £120 which gave a premium of £4.51 then divide by 10 shares which gave the answer of 0.45.

[Author]

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