Forum Replies Created
- Posts
I adjusted Year 3 and Year 4 demand levels based on the inflation rates relative to year 1 and year 2 and then multiplied them by the probabilities for each year and summed these for each year and then used these to multiply by the relevant selling prices for each year – the rest seemed to be a normal NPV question (very time-consuming though)
Also, the 80% cash advance with 13% interest for the credit period/4% annual fee question was problematic
Just curious as to how to solve the ROE question for the rights issue (1) option – was expecting a 1/4, 1/5 etc. rights issue using the discounted share price to work out how many shares were issued to fund the required amount, but they just gave share capital and share premium…
Just curious as to how to solve the ROE question for the rights issue (1) option – was expecting a 1/4, 1/5 etc. rights issue using the discounted share price to work out how many shares were issued to fund the required amount, but they just gave share capital and share premium…
Thinking about it, P = a – bQ might have been covered, but I’m quite sure things like information costs and production volume/profit maximisation based on contribution (per unit) weren’t. I know a 3 hour exam can’t cover everything, but would have definitely prefered the latter for question 10!
A lot of the syllabus didn’t seem to be covered in this exam (e.g. P = a – bQ, minimax regret, a lot of the variance scenarios etc.). Although it was only a 3 hour exam, a great deal of material studied was not exploited in the exam. The mix variance question was very abstract compared to the learning material (used BPP workbook and Kaplan exam kit). The time series question and the flexed question (said something about varying with 15% of sales revenue…what?!) also were not adequately covered by the material. The concert question was unclear when it came to the fixed costs. I made a mistake of not realising that the learning rate question required the answer to be given as a percentage. The diamond/ring throughput ratio question was a variation of the September 2016 specimen, but much harder as they didn’t give the cost per factory hour. The 10-mark gears/brakes question was a RIP-OFF! I probably spent over 30 minutes on this, I think I was right in eventually working out it was a make or buy scenario, but not sure if my calculations were right as this was, like many of the other questions, a lot more abstract and bizarre than anything covered by the material (even though a bit of stretch is expected). I highlighted my thoughts through the ACCA feedback platform.