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Part A) The exam tested currency futures to hedge an investment including Margin calculations and gain and loss on the futures. The dividend capacity and shortfall due to investment. Daily marked to market on futures to calculate gain and loss. And range of discussions about comparison of hedging methods.

Part B had Investment appraisal, with option to delay and discussion about NPV and BSOP.

Part C had restructuring via sell off and demerger. Asset beta calculation asset based valuation and free cashflow to equity valuation. I think part C was very hard because it was not known where to get the equity value of two divisions as no percentages were given for the separate equities. Required lots of time to think.

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