[sadraddin]

In NPv the was scrap value. 500 000 in table Terminal value.

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Average should be

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please share with question number 20 in MCq.. As i know the sharehilder is nit internal and the bank is connected but i do not remember what was mentioned in variant A?? I choose A..

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@sharique123 said:
MCQs Answers:
B
C
D
A
D
B
B
B
C
D

Q1 (A) – Comparatively Easy Question in the Paper to Handle:
NPV = + 1,848 (It is exact figure not approx)
Candidates were required simply to incorporate the effect of tax and inflation.

Q2 (A) – Tricky Question:
Forward Hedge was favorable. Value under forward hedge : 230,175 (Exact Figure)

Q3 (A) – Most difficult question of the paper:
Q3 (A) (i) – Market Value : 991 per loan note (Exact Figure) – No share option
Q3 (A) (ii) – Market Value : 942 per loan note (Exact Figure) – Share Option
Here I want to mention some mistakes which some people can make. Firstly if you have calculated the conversion value after seven years then the nominal value at which loan will be redeemed must also be taken at seven years. It means discounting only at 1 year backwards + you also need to discount one year interest payment backwards because value for comparison is available after seven years and loan note value can be found at seven years but one year interest payment must also be discounted.

Q4 (A) – WACC – 9.94% (Exact figure) – Here I want to people tell that whether they have calculated the cost of debt (Kd) using IRR method or used formula (i(1-T)/P).

Q5 (A) – Interest Payable = 211 (Exact figure).
Here 2 things must be considered that WIP was 50% complete so must be excluded from the working capital.

what about mcq from 10-20? Do you remember the question number 20?

[sadraddin]

In MCq question number 20
Bank is connected
Shareholder is not internal!! Shareholder is also conndcted.

I would like to know what did mentioned in variant A and B?

[sadraddin]

Dou you remember in Mcq 20 in A variant mentioned that only bankers is connected yes?

[sadraddin]

Why in Wacc calculatuon in calculation of debt you think that Irr method should not be used? I have done it with IrR method..

Here is my answers
b
c
d
c
d
b
d
b
c
d
a
a
c
a
c
b
c
d
c
a

[sadraddin]

Does anybody have MCq answers from 1 to 20?

[sadraddin]

@mc20united20 said:
how come? :O
Every year 3000 cashflows and investment is 9000 no scrap value. the target of roce is 15% and Payback period 2.5 years.

all i did for payback period was deducting the investment from yearly cashflow, that means it took 3 yrs.

for ROCE i did was, for avergae investment: (9000-0)/2 and average profit ((3000×5)-9000)/5
ROCE = 1200/4500 = 26.7%.
Yes its right)
I don’t know what did i miss in that question? :S

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