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Guys please don’t close the thread before confirming the theories! Especially those who were getting error messages

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What does it matter which paper though

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@pathway yes, I do! I think every finalist does?

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But if you reset your password you can log in

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In my opinion, I don’t think all the marks are for the final answer! Remember you had to calculate different figures, so I think the marks are spread out

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Nominal means they were already adjusted for inflation (i.e there was no need to inflate them!) That, to me, meant you had to include them as they were

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Andrew, are you sure about the fixed costs? They were even nominal, so I don’t think your point is right ???

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Ohhh! fumsky002 my question was what was the question in the paper, as I don’t remember it exactly! Though someone must have answered it in previous posts!

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Sorry, what was the question?

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It’s (dividend % on nominal value)/market price

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Well, cost of preference share is dividend/market price! Cost of equity use CAPM for that … soo..

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We had options of probability analysis, sensitivity analysis, simulation … so there’s that! And treasury bills are issued by the government and thus they are risk free 🙂
Idk why people are worried, we shall pass!! :):)

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Sorry, I don’t remember, pinkyjovin123

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Rights issues are always cheaper than the share price

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@ ematete2005 the question said it was 20%

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Hello @ pinkyjovin123 you should check previous pages, most of those were already answered! Hope that helps …

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Why do those fixed costs figures seem different from those in the paper? Weren’t they in 100k’s?

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Conlonl, I don’t remember that question clearly to give you an appropriate response but what you described is the the conversion value!

Vikar, commercial paper is a money market instrument issued at a discount, it’s not interest bearing

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The convertible bonds have a market value! (Conversion value*discount factor of final year) + (interest*annuity factor)

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It was part B, before the question of ways of analysing risk

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I can’t seem to quote! Anyway, the money market instrument was commercial paper which are only used by large companies (the co. in the question was one!) Treasury bills are used by the government

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Rights issue 5 and capital rationing 4

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On the question with the agency problem, I too didn’t see this as the answer coz I also thought the other seemed more plausible! I think it was D? I don’t really remember the exact answer, sorry

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Did you work out PI numbers from past papers or the revision kit? I could have sworn it was PV/Initial investment! But I don’t know, I could be wrong

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PI =(NPV+Initial Investment)/Initial investment

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