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Tricky paper. NCI for 100% sub was 0? I believe? How did people do goodwill? I think i got like 7.25 for one and 22 or something for the other.
The PUP in dollars was 9.
Intra sale 30No idea how to do the carrying amount and taxbase? Anyone.
I think i messed up a bit. Hope to pass.
What did people get as net cash flow equivalent figure? (33)
and good will was this full good will method? NCI was given.
@sahil1234 said:
I have never said this before but this exam was a nightmare. Although Q2 and Q3 were relatively easy but Q1 SCF was definitely not. Or maybe I didn’t practice it enough as I really didn’t expect it to show up. Was hoping for a consolidation question. I just hope I pass.Very time pressured for question 1 I watched Chris cashflow last night but when I opened the question today I was baffled and though I expected cashflow my T accounts were all over the place 🙁
How did everyone find that exam?
I thought it was very hard compared to previous sittings. The cash flow question blew away even though I practices it and watched the tutor revision video where he goes through the cash flow.
I had my final net cash flow figure as 33 (I included the 2 cash from the net asset at acquisition however I think it was (31)?
I attempted question 2 and 3
Question 2 SBP was bit tough too but the impairment one on IAS 38 was fairly straight forward.
Any other comments? What did people do with the cash flow? I really struggled.
I got 3.8 too. What did people get for NPV first part? I did sales ninus cost got contrihution x by probabilties. 18450.
My final NPV was negative (137) anyone else got this?
@mynameisearl said:
What mcq’s do u remember?Some of the MCQ i remembered.
I chose the lease after tax option.
One of the MCQ i chose market segmentation.
How people did Shareholder return. I think dividend plus 0.32 divide 9.00.
Cost of equity i got 13.4
contraction fiscal policy was high tax n supply
Sales – varable 4000 minus 2000 / by NPV got 10 per cent answer.
Cos for the payable day ques was A 730 000 something
For the effectivness i chose C D
For the financial management i chose 2 only as option. Not cash flow but they do plan funding.
@sharoz said:
For question 3 the issue of new bond had a cost of debt of 8-effect of tax 8*.75 is the real Kd.Also for change in gearing we I assume we had to mntion something like gearing has decreased slightly because of issue of debt but in reality it should have increased because we issued new debt which would have increased the risk of bankruptcy hence share holder asking for more return but in our answer we have assumed share price constant which really not the case of reality.
also in NPV question Tax was paid in that year only so we were not to do any lagging.
It was irredable debt 8 per cent you had to use. Not repayable so you do not tax 8 per cent by .75 that is what i seen every where. So i did 16000/ 438 000 sumthing divide by 8% for wacc bit.
Anyone get these MCQ answers?? Please confirm.
I chose the lease after tax option.
One of the MCQ i chose market segmentation is this correct?
How people did Shareholder return. I think dividend plus 0.32 divide 9.00.
Cost of equity i got 13.4
contraction fiscal policy was high tax n supply
Sales – varable 4000 minus 2000 / by NPV got 10 per cent answer.
Cos was A 730 000 something
For the effectivness i chose C D
For the financial management i chose 2 only as option. Not cash flow but they do plan funding.
@england said:
I did same for Q 3 I did it seperate calculation for both and did u use money market and forward hedge methodsYes. I said choose forward markwt as it was a payment.
NPV Negative 137 i saw two of you got this which is good sign. After the probabilty i got 18450 x by the volumes
WACC 9.8 then reduce slightly.
The 16000 had irredeable debt of cost of debt you had to use 8% if im correct? Also add the 16000 onto the 432000 something for total market value which came to 438000 something
Company was over trading.
Regaeding MCQs as follows:
I chose the lease after tax option.
One of the MCQ i chose market segmentation is this correct?
How people did Shareholder return. I think dividend plus 0.32 divide 9.00.
Cost of equity i got 13.4
contraction fiscal policy was high tax n supply
Sales – varable 4000 minus 2000 / by NPV got 10 per cent answer.
Cos was A 730 000 something
For the effectivness i chose C D
For the financial management i chose 2 only as option. Not cash flow but they do plan funding.
Anyone agree with above? What people think? What other MCQs were there?
@shoaibacca said:
increase which of the following the objective of maximise shareholder wealth?1.share price
2.divident payment
3.earning per share
4.retained profitShare price n sumthing else i chose.
@acca145 said:
which answer you guys selected of expectation theory, invert yield, market segmentation mcqMarket segmentation
@diyaaa said:
EPS report income to shareholders? Correct or not?
Increase in EPS also increase in Capital Employed?Anybody knows ans of this MCq
I just neither. EPS is not to do with capital employed. Its ROE then ROCE.
EPS report income to shareholders also not true in my opinion.
@dawar555 said:
U did it exactly as I did….. we will get marks for the effort ?I would think so. As we knew we had to tax by 28% too. I would be suprised if i do not get mark for that.
Anyone remember the format of section B. ?
@zvix said:
my TADs were exactly as yours 280. but i did the timing from 1-3 years coz the investment was made in year 1 so had to be accounted for in that year and the TAD for the 4th year i did it like 28%of 500. it was 140 for the 4th year. i dont know if i did it correctly. but for the 280 we definitely on the same page.I think your n my answer is correct if scrap is not included. However…. tax was 1 year in arrears hence year 2 to 5.
How did people do there TAD for NPV?
I did 4000/4 = 1000
Multiply by tax and year 2-5 got 280.
Did people deduct the 500 scrap to do 4000-500 then 28%?
@acca145 said:
In mcq it was mentioned that Roce was using initial inv. maybe I am wrong !Yh i chose neither. Surely if they targetted 15% and its 26 is that not exceeding?
@zvix said:
Roce was based on initial investment not average investment. so there was no need to divided the 9000/2.. therefore roce would come up as 13.33. below target. so reject.this is what i thought…..So i chose Neither as my option. Hopefully its correct.
@dawar555 said:
1. cost of equity 10%
current year no dividend
year1 no dividend
year 2 0.25
year 3 0.50 and it will be increase by 3% subsequently
calculate market value using dividend valuation model…..Ans.
i did this wrong in exam mime answer (7.35)…. but these were forecast values,we would have discounted the value after year 3 to PV of Y 0
calculation : (0.5*1.03)=0.515 then 0.515/0.1-0.03 =7.35 now convert to Pv 7.35*.751=5.5195.519 was not even a option! But even i did 7.35 but i was thinking something was not right cant be that easy now i see its coz you had to discount it! I fked up MCQ badly. I can only hope i can score around 12-13 that will be decent chance of scraping pass. We all going to make mistakes like e.g. WACC i calculated preference using 1-t but then i calculated the normal one d divide p …. i know from kaplan they say if u not sure u shud keep both workings NEVER cross anything as you get marked and not penalised for double mistakes. So im hopeful. But MCQ you get 1 chance. 2 marks or 0
@sunny12 said:
Please try to solve this….specially requested to open tuition…1. cost of equity 10%
current year no dividend
year1 no dividend
year 2 0.25
year 3 0.50 and it will be increase by 3% subsequently
calculate market value using dividend valuation model…..2. Repo …sale an item of asset on $1000000 and will repurchase after 90 days on $1009862 ..assume365 days a years
what is the value of interest paid….calculate in %…3 Share price increase ….(i remember just 2 option)
a .10 when an investment has positive Npv…
b. 20 announce the plan to the financial expert and shareholders…4.. Government assisstance…
a. govt make a legislation to increase employee wage.
b. to construct the roads…
c .
d …..Q1 A 7. something
Q2, I guessd
Q3, When announced
Q4, Gov assist chose last 2 options …. one was on rails, other i think minimum wage…. why wud gov only increase manufacturing … felt only last 2 options were corect. 3 n 4
@nfoyzal said:
I also did the same and got 26.6 something so I choosed the ROCE option only. I guess you wudnt average the capital investment as there was no scrap hence there was only input throughout the investment and you keep it at £9000. So maybe you and I are wrong!I did same but neither target was reached. Both exceeded. So i chose neither.
@michellebeepath said:
question 5 was abt what again?@sharique123 said:
I have also inflated as you did. But I inflated all cost as inflation rates for all cost was given and I also deducted the residual value for calculating the tax benefits.So you did sales and variables say e.g.
1000 x 1.04 to power of 1
2000 x 1.04 to power of 2fixed just like this..e.g.
400 x1.05
600×1.05i didnt do power off for overhead (one of examiner article had it like this)
@nfoyzal said:
I believe you wouldnt as reserve is not a source of finance and therefore you cant determine what the rate if return would be and hence the market value. So you would exclude reserve in WACC calculation.Totally agree. Reserves excluded.
Can someone please tell me what the interest rate risk identify question was about please?
