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Passed with 50%… thanks to a Martin

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Passed with 62%… really hoped to get a higher mark… anyway thanks to Jonh and Rob.

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Passed 54%…was really hoping to get a higher mark…thanks to these Opentuition lectures…

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@gfryer7 said:
I keep seeing a differing answer to mine regarding the WACC, more specifically, the preference share cost (Kp).

I remember in the exam thinking it was quite high. I know my WACC Calc’s wuite well, and know its the nominal% / MV. From memory it was higher than the Ke, which I thought was odd. Only seen a few people who had the same as me. What did everyone do who got different?

Can’t remember the exact figures but I think it was like this 10% Preference Shares with normal value of $100 per share.

Kp = d/Po
Kp = (10% × 100) ÷ 100
Kp = 10%

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@trishee said:
Why do those fixed costs figures seem different from those in the paper? Weren’t they in 100k’s?

lol…that’s just an example…sorry i don’t remember the exact figures

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@bibek said:
Is Fixed cost relevant or not?? in NPV calculation

I think it was relevant cause they were not the same for each year…ie.yr1 $200k, yr2 $230k, yr3 $300k & yr4 $250k

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@vebem said:
if so maybe you can you tell please the way you calculated the first question concerning money market hedge
Many thanks.

Can’t remember numbers but 1st I think was asking money market hedge:

Steps
1. Borrow funds in currency which you need the money
2.Translate-exchange the funds today
3.Deposit the funds in the currency which you eventually want the funds until…I think that was 6 months

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F9 was fair…hope to pass

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Q32 & Q33 was ok…Q31 b.i. & ii

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passed 53%

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6% Convertible loan $40m and directors pushing for 8% etc…

Interest rate of 8%
Yr 1 0.93
Yr 2 0.86
Yr 3 0.79

Split the Equity component 1st:

$40m X 6% X (0.93+0.86+0.79) =$ 6,192
$40m X 0.79 =$31,600
Total =$37,792
Equity share component =$ 2,208 (goes on your Equity in S of FP)
Total Convertible Loan =$40,000

Now for interest and LTL loan:

6% Loan $37,792
add 8% interest(37,792 X 8%) $ 3,023 (deduct from your S of P&L)
Total $40,815
Pay (6% X 40,000) ($ 2,400)
Total LTL Loan $38,415 (goes in your LTL in S of FP)

Anyone struggling with this stuff just follow Mike Little’s lectures and revision on this website.

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F7 was okay…liked Q31 -Fraud,Convertible Loans etc…thanks Mike for your lectures and revision…really helped me a lot…Q32 Ratios were too easy

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31% fail…didn’t complete section A…circled the answers on the question paper only

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Passed 54%

[Author]

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