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(a) Discussion on CEO/chair views(5)
(b) Report, that (i) calculates APM (16) and comments on the results (4)
(iii) Explain assumptions (5)
(-) Compare APV to NPV. Describe fallbacks of APV. (6?)
(-) When stop non-electic (4?)

Please get back with any split you remember for Q2 Osman/Mehmed.
Or how many marks were available for Q3 ESG discussion (response to critique).

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Hey, anyone remembers marks split for Q2 Osman/Mehmed?

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Working capital mcq:
AP days = avg AP/COS * 365
60 = 120,000/COS * 365
Cos = 730,000

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I remember mcq on interest on repurchase.

96.5 = 96 * (1 + interest* 50/365)

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@shoaibacca said:
last 20 number mcq how to calculate share price

It was ~$112/100 I think loan note, each convertible for 20 shares.

20*mps=112, mps=5.6 indifference point.

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@mynameisearl said:
Can we list all the mcqs and answers?

If anyone can remember

Agree.

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@mynameisearl said:
Q5 part b i did in perpetuity as it said ‘foreseeable future’ and i got a really high npv. But it really confused me and i felt so unsure if that was the right thing to do.

WACC q i forgot what to do and deducted tax from bank loan interest rate, not sure if that was right.

Q1 – im not sure if what i wrote was ok for overtrading.

Q3 – hedging, the fo was better and about £6k less than the money market hedge.

Mcq – sensitivity analysis i got 10% but felt so unsure as got my self confused with the tax, think i ignored it in the end.

I guessed a lot if the mcqd.

I chose leases for i think it was mcq 1.

Sensitivity was for sales volume. So take contribution. If it was for price, than take sales revenue.
NPV = 200
Sales = 4000
Variable costs = 2000

(4000-2000)/200 = 10%

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@mynameisearl said:
Hi,

The mcq’s were really hard.

There was one i should have known the answer to but could not work it out. The cost of equity. It gave the dividend 10p, p/e 5 times, d/C 4 times. What is the answer?

Thanks

Dividends paid = 0.1.
Dividend cover = eps/div = 4. => eps = 0.4.
P/E = market price per share / eps = 5. => m.p.s = 2.

Cost of equity = dividends paid * (1 + growth rate) / market price per share + growth rate.

I don’t remember exact numbers, but I think growth rate given should have been adjusted for particular period.

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Don’t you remember what exactly the question was?

Expansionary fiscal policy => increase spendings;
Contractionary fiscal policy => reduce spendings;
Expansionary monetary policy => increase money supply;
Contractionary monetary policy => reduce money supply.

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Please, tell the correct answer to 1sr mcq.
And MCQ with mix of expansionary and contractionary policy: increase/decrease gov. spending and money supply?

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