[Safna HB]

Not sure but, there was an FCF calculation, and then you had to calculate the profits from the foreign subsidy and you had to find the dividend capacity. So all of that combined I’m guessing was for 12 marks.

[Safna HB]

Reconstruction and dividend capacity which had profits coming in from a profit subsidiary question for 50 marks.
Reconstruction included MBI or sale of assets
Valuation of the division that had 20% of total assets and liabilities.
Benefits of share buyback

Interest rate futures, swap and FRA
Why options aren’t a good choice
Advantages and disadvantages of interest rate swaps

VaR, NPV calculation followed by sensitivity analysis
Why does NPV undervalue your investments
The risks using NPV and how you can mitigate them

[Author]

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