[r30hul]

Very Time Pressured Guys!!!

Did Q1, tried to relate a lot to classroom discussions.

Q2 ABC – Calculated current cost £8.03 (Standard), £108.03 (Special) with ABC I think I got Standard £6.22 and £106.XX or something for the Special!! Than discussed the benefits of ABC and the different is absorption rates.
B – Discussed environmental accounting, TQM and ABC also applied the Harmon’s Process Matrix to each process in the CC and commented about what could be outsourced or automated!

Q3 – This was are complete disaster!!

Just hope i pulled enough marks from Q1

[r30hul]

Q1 Fixed costs were to be included as they were an annual fixed cost for roads and maintenance and this is to increase by inflation every year by 2%
NPV – I got was 276 + Disc rate used was 12% money/Nominal rate as inflation was involved in the calculation
ARR – 28% using 12% and 31% using 9%
Q1 C – I wrote about Sensitivity analysis and probability analysis

Q2 – A Reject proposal as the new Receivables policy was more than current policy as the discount of 1% costed 75K

B – I recommended accepting bulk discount as it was cheaper than the current order cost.

C – miller orr – about cash injections etc..

D – Investment in Receivables factors – Risk, Current working capital policy, Current Mkt avg terms, interest rates, liquidity requirements

3 a I did not include the OD, cant remember what wacc i got. I think it was about 9%, i sued the capm cost of equity for both ordinary shares and preference shares, cost of debt via IRR of convertible debt – I did take the reserves of 15m off the cost of equity to get the mv of ordiany shares.

C – Convertible more favorable than bank loan due to no lump payment at the end, cheaper, although you do loose equity but director controls the dividend payment. whilst Bank loan consist of regular monthly payments of capital & interest that are tax deductible but could cause issues on the cash flow of the business

Q4 Just answered the calculations!

Overall I felt the paper was ok, but guys do remember you do get follow through marks on questions as long the marker can see you have used the theory.

Good luck

[r30hul]

Hey guys, i wish yo uall the sucess in the exams, i thought the paper was fair, and ok. I counted the nanrks i thought i would get in the paper and calculated it to 79% than i relised i was propbably being generous and down sized it to 69% lol

Hopefully i have passed! I have put all my notes away, hoping to dispose of them after my results!! F9 tomoz!

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