*** ACCA F9 December 2016 Exam was.. Instant Poll and comments ***

@madihakhan18 said:
I guess in yr 0 cs it was at the star of yr 1 that means end of yr 0

I think the wording was confusing. They said “tax allowable depreciation can be can be added back on the whole cost of the investment…which takes place at start of year 1 *year 0*. However, tax also takes place one year in arrears. So you begin your TAD in year 2, aligned with the deferred tax payments. Should have ended up with a final tax payment and the TAD from the y4 balancing allowance in year 5?

@kbourne said:
Can anyone tell me for the WACC question, what number you used for risk free rate of return in the CAPM, when calculating Ke? And also what discount factor was used when generating the redeemable bonds? I used that weird 4% treasury bill option as I couldn’t see any other option.

I used treasury bill as risk free rate as normal I have dealt with this many time, the cost of equity is 11%. Dont worry about this

@thuongph17029 said:
I used treasury bill as risk free rate as normal I have dealt with this many time, the cost of equity is 11%. Dont worry about this

Ah great! Thanks. It felt right instinctively I just never saw it described like this before. Good luck with your results

@kbourne

I just put the whole amount of TAD in year 0, but my tax was one year in arrears.
Guess I have to wit for 16th Jan now :((

@madihakhan18 said:

@kbourne

I just put the whole amount of TAD in year 0, but my tax was one year in arrears.
Guess I have to wit for 16th Jan now :((

You may lose a mark or 2 at best. As long as you show your workings including the balancing allowance for no scrap value you will maximise marks. I am more worried about the MCQs

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!! :):)

I keep seeing a differing answer to mine regarding the WACC, more specifically, the preference share cost (Kp).

I remember in the exam thinking it was quite high. I know my WACC Calc’s wuite well, and know its the nominal% / MV. From memory it was higher than the Ke, which I thought was odd. Only seen a few people who had the same as me. What did everyone do who got different?

@gfryer7 said:
I keep seeing a differing answer to mine regarding the WACC, more specifically, the preference share cost (Kp).

I remember in the exam thinking it was quite high. I know my WACC Calc’s wuite well, and know its the nominal% / MV. From memory it was higher than the Ke, which I thought was odd. Only seen a few people who had the same as me. What did everyone do who got different?

Can’t remember the exact figures but I think it was like this 10% Preference Shares with normal value of $100 per share.

Kp = d/Po
Kp = (10% × 100) ÷ 100
Kp = 10%

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

Sorry, what was the question?

Ok, thnx all, hoping for a pass……fingers crossed…thnx again

Does anybody remember country x and country y MCQ(Forward rate)

Is its Answer was A) 1.62

Thnx Trish, i thot u remembered. I cant either, no one has responded so i guess nobody remembered d question. Thnx peeps.