[susanprice]

I am so happy too – 35% last time, 50% this time

[susanprice]

Thank you

[susanprice]

Thanks that was what I thought 🙂

[susanprice]

Is there a way of calculating spare debt capacity or is it just information you would be given in the exam?

[susanprice]

If I understand this correctly, Toobalvi – please correct me if I am wrong, John Moffat.

Breaking down the individual components of the saving to the company

14488 * 80% – is the amount of the loan to be subsidised
.02 or 2% is the amount of the subsidy
75% is the amount the company saves (adjusted for tax)
Annuity factor discounts the sum to net present value

So basically you are saving 100% of 2% interest due to the subsidy(positive value), but you can’t reclaim 25% of 2% in tax on this sum(negative value) – so the net effect is that the company saves 100%-25%=75% which is a positive figure – a benefit to the company and a positive adjustment to APV.

This is a tough paper – I’m on my first resit (35% first time). Remembering is easier if it is understandable where information comes from (a downfall in my first sitting, a challenge this time). There is so much to understand, I hope you are enjoying the subject – it will make learning it so much easier. I wish you every good luck in December 🙂

[susanprice]

Thanks – I will do. I have actually just re-read the ACCA article on bonds and bond yields as well. When I was studying for June I was feeling number dyslexic and none of it sank in. This time though it has made total sense – think I must have been stressing!! My last exam!!! 🙂

[susanprice]

Thanks – I did mean annuity factor. I think that helps. Stating assumptions gains more marks, so being able to justify them adds to that I guess – and helps to understand.

[susanprice]

I have just been for a walk to think this one through. Could someone correct me if I am wrong or confirm my assumptions please

Do we use the company’s pre-tax cost of debt for two reasons

1. Because we are calculating the saving of interest ie difference between what we should have paid and what we end up paying.
2. The original calculation will have been based on all equity, so the DCF will be for equity only, not subject to tax. As we are only calculating the discounted value of the money we now don’t have to hand over to the tax man, we should use the cost of debt as it is what the company would pay and its pre-tax as it would be for all equity?

[susanprice]

<cite> @jocain1 said:</cite>
Fail first time 40% help how can i study for this paper its a beast for real ………………..

You can do it – only 10 marks more next time. To get 40% you must have a good grasp of the subject already -so your build up to the next exam will be pure revision. Take the advice of all the advisors
1. Practice the whole syllabus
2. Practice past question papers – under exam conditions as often as possible so you are comfortable with time constraints
3. Remember that the questions are marked accordingly for example if a question has only 3 marks make 3 valid points – don’t write 3 pages, you don’t have time
4. Look at the writing style of the current examiner – he’s been writing these papers for a few times now so you can prepare yourself for the curve balls
5. Use Open Tuition lectures – they’re free and can be a useful addition to any other study notes you have

Best of luck – I scored only 35%, so will be following my own advice for the December sitting. Whatever you do, don’t beat yourself up about your score – this is a big subject with a notorious fail rate and you have come so far already – we’re going to be posting on here in 6 months time with glowing pass marks, aren’t we??? 🙂

[susanprice]

At seconds past midnight I received my exam results. I decided to concentrate on Advanced Financial Management as I felt this to be such a big subject. I got 35% for this exam. However, ironically, the exam I considered postponing until December and only “crammed” for after sitting AFM (a day and a half later) – Advanced Performance Management, was a bolt out of the blue, 58% – pretty respectable pass.

I have no problem with having to do a resit in December. This will be my last exam – the light at the end of the tunnel. I am extremely please with my 35% as I knew this was a huge challenge for me – I sat Financial Management 3 times whilst moving home and going through a divorce and got 38%, 41% and 67% respectively. I have a wonderful supportive boyfriend and he backs me all the way, so am hoping to be successful in December. If the results are out on 8th Feb next year then it will be 2 days before my 50th birthday – the target I set myself a few years ago (I started studying at 44), do-able if I concentrate on writing up and getting my practicals signed off.

I am so happy about my exam results as I know I did my best. I have a good grounding with the technical stuff in this exam – just have to master the analysis which is what sets us apart as ACCA students and lets us help mould the real world.

I congratulate all who passed and have completed – a long rewarding journey, now the world is your oyster with a qualification worth owning.

I congratulate all who entered but haven’t completed as well, for those who passed – on to the next subject, for those who didn’t get enough marks – you know you can do it, look how far you have come already, and good luck for future sittings.

[susanprice]

<cite> @nimrah said:</cite>
can any1 tell me about venture capitalists risk appetite>

Hi – I answered this bit. There was an article on Business Angels in Student accountant. I’m not sure whether it was directed at P4 or P5. They are similar if not the same as Venture Capitalists. Their risk appetite tends to be more averse as their portfolio is limited. As they tend to have hands on in the companies they support financially, they do not have so many. Also they can take some time to decide to invest in a company which is usually in the fast growth “rising star”, sector. They will investigate the company, see how well they are run, identify their managers attitude to hard work and then give their expertise in areas where the managers are struggling like marketing or getting them contacts with the right people. I’m hoping that was the right answer and the right reasoning to their attitude to risk. Hope that helps. Trouble is if you take into account all the articles in SA alone, as well as reading a good paper, The Economist and the text books, it would be difficult to take everything in. However, sometimes common sense may prevail to get a point or two and it was only five marks in all for that bit.

I sat P4 as well and had concentrated on that one – so think I probably didn’t too well on P5 – never felt so under prepared. Hopefully will have passed P4 and re-sit P5 in December, fingers crossed

[susanprice]

<cite> @Blueberry said:</cite>
Help! I am going crazy. I attempted only 3 questions but marked all 4 in the booklet front page by mistake. The invigilator didn’t allow me to correct anything. Do you think it will be ok? Is this data for information purposes only or does it affect anything?

The exam itself was ok, the main difficulty I had was to link performance measurement metrics with Porter’s forces. A weird question, but hope that the most of 16 points was for naming the forces and relating them to the case.

Hey – I shouldn’t worry about this. I realised that I hadn’t filled the front page “questions answered box” at all when I sat P4 on Tuesday. I mentioned it to a passing invigilator this morning and he said so long as you block out the relevant question number at the op of the page you’ll be ok. This is understandable as the exams at this stage are so time pressured it is so easy to forget to fill in that box on the front page. Maybe if you get to review your exam experience you should mention it to ACCA and they may eventualkly eliminate the box from the front of the paper.

[susanprice]

Have I done this wrong? Or was it a bit of a Eureka moment? Having studied Mr Malde’s previous papers, he can be a bit sneaky and make you think about some element of calculating the gearing. I had looked at M & M’s calculation which is on the formula sheet, literally just before sitting the exam and the Ke to i was ungeared equity – so used this to work back. Question 1 section 1

I think I messed up on other bits of question 1 but may have got that. Attempted about 90% of the paper and did Question 1 last – just hope I have got 50% as I’m with most people on this paper not lookig forward to re-sitting again.

Hey-ho P5 Thursday – good luck to everyone anyhoo

[susanprice]

57% – first attempt, so pleased. Really did not want to sit this paper again. P3 in December, Tax in June then really can’t make up my mind which one to complete the set. At least I have another year to make the decision.

Its taken 5 years to this point (including a stretch of 18 months where I only passed one exam due to personal problems), so darn pleased with my progress, all self taught and a mature student – just could do with a qualified mentor. A lot of my work covers a lot of the practical stuff, but a mentor would be handy to sign it all off and ensure I’ve covered all the bases adequately.

Never say never – good luck to all other ACCA students, hope your journey’s a good one 🙂

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