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This was the first time I relied completely on open tuition. For past 7 papers mu strategy was open tuition plus text book. Guess it back fired.
I got 1,98 amount. I got that exact amount in the choice when I calculated. So guessing it should be right.
But u need to consider earnings after expansion too. Sales would change, tax amount would change. In case if debt sales, interest and tax would change. That’s why eps would be diff than current. As well as for debt n equity
@lukman94 said:
The exam was a totally unexpected one. I sat there and it took me a good 5 mins to accept the fact that the examiner screwed with us LOL. I started with section A and B and spent a good hour answering what I could and moving on to section C.Q31
Equity Vs Business Finance.Calculated the Theretical ex rights by calculating how many new shares had been issued 2500/5 = 500 new shares. This making total number of shares 3000. Calculated market values by multiplying 2500 * EX DIV PRICE and 500 * discounted price. Divided MV by number of shares to get theoretical ex rights of if I remember correctly somewhere between 4.60 and 4.70.
Moving on, calculated the Eps which was basically Profit after tax over number of shares. For equity, the number of shares increased giving EPS OF 0.33 and for debt finance, interest increased this affecting Profit after tax and giving an EPS of 0.35.
The new share price was simply PE RATIO that was given multiplied by EPS. I guessed this as I remembered doing this in a past paper.
In terms of which is better, I used the debt equity ratio and also spoke about other non financial matters.
For Islamic Finance, I spoke about Mudharaba as a alternative to equity and Sukuk for loan notes.
Q32
Multiplied the probabilities by the cash flows for each year. Multiplied by discount factor. Compared NPV to investment to see if it was financially acceptable. I got a positive result, so accepted investment.
Struggled with part where it asked about NPV being zero. Didn’t spend too much time on it as it was only 1 mark.
For highest probability, basically selected 0.5 from year 1 and 0.6 in year 2.
The last part required you to talk about
only TWO of the 3 mentioned concepts.I selected simulation and spoke about how such methods are used in times of uncertainty in assisting to forcecast. Etc gave some advantages/ disadvantages.
Lastly, spoke about risk adjusted discount rates where I mainly spoke about CAPM and specific discount rates talking through the whole process of ungearing and regearing.
PLEASE LET ME KNOW YOUR THOUGHTS.
Fingers crossed for a pass 🙂
TERP Was same. But I got EPS of around .41 and .45, as the earnings had to be after expansion. Recalculated the earnings divided by new no. of shares based on equity or debt finance. For last bit, I compared the debt equity ratio with the industry standards and commented on what could be better with either options. Even i wrote sukuk and mudarhba..could only rem those two.
I went thru open tuition lectures, even revised thru complete open tuition notes 🙂
Probabilities was very straight forward. Refer to
Open tuition notes. That was easy 6 marks. Looks like we all got different section c. Here in
India we got One section c was probabilities and another one was Debt vs equity finance for business expansion. I felt MCQs were tricky and section C was easy. Except 6 marks for Islamic finance..that was not expected@cr333 said:
Passed on my first attempt with 85%, pleased with that!I thought my score would be lower after reading the exam post-mortem thread and realising some of my answers were wrong, but it seems I got most of the other answers correct.
I thought I would fail after reading those comments n answers…none matched. But I did pass…62..not bad at all for me 🙂
Got it…passed…so happy 🙂 now can study double hard from tomm..all the best everyone wait should be worth it..n for ones who got it. Congrats
Anyone who get their result via sms or email, pls let us know. I am very anxious. Though I am not a finalist but wrote F5 after 2 yrs break, that too with too many obstacles. I thought the paper was pretty straight forward, n was very confident after the exam. But as soon as I read other students comments and their answers on the exam, my confidence stumbled. Now I am just not sure. I strongly felt I should score around 70s, but now I am not sure if I will pass or not.
Anyways few hours more. All the best everyone. Please update as soon as you get the result with timezone.
Exchange gain/loss was uncontrollable, the gain or loss is because of change in fx rates, even if the manager would not give credit period of 60 days, even a day or two late in payment could cause fx gain/loss.manager has no control over market rates
If you are planning to do MBA, I am not sure if CIMA will make a lot of sense, considering there are lot of similar subjects. CFA is core investments related and ACCA will open more opportunities for you in Finance. Not sure if this was helpful. All the Best 🙂
I started in April last week 2014 and already completed F2 in a month, now studying for F3 but I do come from accounting background and quiet familiar with all the concepts covered in basics. I guess 15 hours per week is more than enough. Just make sure to spend more time on practice test. Opentuition lectures are very helpful for people without accountancy background.