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Anyone remember about the lease or borrow to lease decision? Whether the maintenance costs were relevant under both?
@aboluwarin said:
Did anyone notice in the wacc question it was cum div and cum interestDiv and interest had just been paid so ex
@dtngocanh89 said:
Q22 was about valuation basises:
Answers was:a) Net realisable value- when company has no intention to liquidate
b)…
c)…d) Replacement value when it is going to liquidate
I think a 🙂
A) is when there is intention to liquidate and D) is when estimating the cost of starting up from scratch. So neither answer
@ivalina20 said:
Can someone remember the Mcq for the dividend growth model. I think it was dividend paid1. 2. 3. 4
0.300 0.314 0.328 0.348What was the growth rate that you have
Think it was 3%
@surajnair said:
2% discount? Yea option D . Not sure about buffer stock. How about equity beta and fra? I got 1.16 for equity beta and 37500 for fraHow did you calculate the fra?
The question regarding interest derivatives. I chose a which was that swap of fixed and variable rates must be beneficial to both parties but it was a complete guess.
The one about the international Fisher effect and purchasing power parity. I chose that the Fisher effect statementioned was incorrect but purchasing power parity was right. Again a guess.
The saving or cost of leading was option a I believe. Around 97k if I remember correctly.
@adam94 said:
What was the answer for Payback in NPV mtq? I think it was option A 3.4 yearsCan’t remember if it was a b c or d but I’m sure the answer was 3.4
Yes with 10 I did liquidity ratios so option c. The others were signs of under capitalisation
Had A for Q1.
Yes, wacc was 11.67% in q31 (allowing for some rounding. Q32 was npv of 60 to 61 I think. Think I taxed a year which had a loss but probably only lose a mark at the most.
@ranapardeep87 said:
I admit some of the question in MCQ section were time consuming, but some of them were relatively simple and it was just a matter of second to answer those question. Like there was a question where VC was 230, and question was to provide the price at which profit is optimum and the answer is 230 because optimum profit is there where MC = MR, and if anyone has gone through the Breakeven point analysis then he should be answering such questions in very less time. Overall the Exam was OK.Can’t remember what the numerical answer was but your method is wrong. MC=MR is right but MC doesn’t equal P. You needed to do MC=a -2bq and solve then insert your figures for a,b,q into the price equat ion P=a – bq
@petraicon said:
Q31 for material planning usage variances:
I did actual production at standard quantity by standard price
24000*2m(2.2m/110*100) * €3 (2.85/95*100) = 144000
and
actual production at new design quantity by standard price
24000*2.2m*€3 =158400
144000-158400= €14400 Adverse planning usage
Is this really wrong?will I get any marks?Anyone remember the actual quantity used in production? I think it was 54,000 or close?
Shadow price is the amount the business would be willing to pay over and above the normal price of the scarce resource. So not sure about the mcq answer as I interpreted it as saying just the amount the business would be willing to pay
@micksymooresy16 said:
Found the MCQs awful, so hard!Q 31 – I did materials price var, then did materials usage variance and broke it into planning and operating variances. Same for labour effiecieny, anyone do the same?
Yes I did the same. What was your materials price variance? Assume you did one variance for price as it was all planning?
Yes but was unsure of maturity. Thought it could be growth but then surely total cost is lowest when all economies of scale are achieved
On the rolling budget the customer support costs were variable to the number of customers. So worked out the vc cost per unit by figuring out the number of customers at budgeted level and then using the new customer growth rate worked out the number of customers in q3. No of customers x vc cost per unit would be customer support costs in q3. Then next part of the question was staff costs which were partly variables so used high low method to separate out fixed costs. Hope this was right!
Does anyone remember what the answer was for Q1? The line on the graph represented profit, revenue etc..?
Anyone remember what the share price was immediately before acquisition for the parent in question 32? As part of the ceo’s observations current price was 2.30
@rangeuk said:
Q 31. I split property and plant. Property cost b/f was 75k – 15k accumulated depn (5 years of 25 years). Revaluation took place half way though year to 66.3m (weird number) then depreciated 6/12 at 3k plus 6/12 at 66.3/20 remaining years. Pretty sure this is wrong but gave it a crack. I tried to break the conversion loan into liability and equity so was like 40m so 2.4m * DF ??? for 2 years plus the 42.4 in final year? equity was balancing figure. Again my SOFP didnt balance but think that deferred tax messed me up.
Multiple choice were fine if you knew your standards.Did the same and balanced. Maybe your deferred tax was off