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In McQ country x and country y
Something like that…Is it A)
Pls let me know..
@mira93 said:
i only remember the options treasury bills and commercial papers.the other 2 wer’nt money market instrumnts. so it has to be one of these. the fwrd rate i usd this calculation :-
spot rate x 1 + foreign interst rate /1 + home interest rate. the other options wer 1.58 , 1.59. 1.62 and one more. i got 1.615. rounded it to 1.62.Was it option A) for forward rate??
Hello @ pinkyjovin123 you should check previous pages, most of those were already answered! Hope that helps …
Hi did any one remember answer of DGM constant or zero growth
Answer of credit sale three month or one month
Answer of interest in borrowing and yield curve slope please n any other multiple choice answers if any one remember I am worried n kind of fed up of F”””””9My WACC was 10.58
NPV I included fixed costs – never have I done a practise question for calculating NPV that told you the figures then didn’t expect you to put them in :/
Money market hedge I kept getting 204 – 205 ish which wasn’t an option Spent ages on this question but now I know what I did wrong – I halved my interest rates (should have read the question properly) I guessed it at $208 but I’ve just worked it out and I think it should be $197
The annual cost of not taking the discount – didn’t have a clue how to work it out but guessed 9.34 can anyone explain it?
Can’t really remember anything else!!
can someone help me? was anything mentioned about the rate of tax on the wacc question, QN 31
Pls the mcq on conversion, anyone remember d solution and how it was supposed to be solved?
Hello all,
I have the below concern regarding to taxable depreciation 25% declining balance, which you can assume to be paid at the START of first year of operation? NPV Calculation uses end of year cashflow? Thus, I add back 800k (1st depreciation ) to year 0 to initial investment? Am I wrong? For WACC I got about 10.6 something. Optimum investment NPV: 13.3m
Explain the term business risk and financial risk (4 marks)
Key features of right issue as the way of raising equity finance (5 marks)@pinkyjovin123 said:
Agency problem-Is it Shareholder wealth not maximised??The Agency Problem : When shareholders(owners of the co.) disagree with directors(the agents appointed by the shareholders to control and manage the co.)
The more I read answers here, the more I doubt that I sat for same F9 paper…..I felt more confident for my 4th attempt but now its seem’s that I’ll rather prepare for a 5th round. Fed up with this paper, when gonna move to P’s level 🙁
@jennyferz said:
The more I read answers here, the more I doubt that I sat for same F9 paper…..I felt more confident for my 4th attempt but now its seem’s that I’ll rather prepare for a 5th round. Fed up with this paper, when gonna move to P’s level 🙁Do not lose hope..I found the paper tough and it is my first sitting. I had no idea what I was doing-totally clueless throughout the exam. The MCQS were not fair at all. Plus we do not get any point for workings but only final answers which is a huge bummer..
I just hope they are lenient while correcting the papers. This paper was totally different from previous F9 papers..nothing about it was straightforward. They made it hard for non-native english speakers like me..
@pinkyjovin123 said:
What are the features of rights issue pls??-a internal form of raising funds/capital.
-Offered to existing shareholders.
-Offered at a discount.
-it is a “right” to the existing S/Hs and a form of reward?Thus scrip dividend? not sure about this one..
-Lastly I talked about the issuing costs-might be cheaper or expensive. It depends to what it is compared.@pinkyjovin123 said:
What are the features of rights issue pls??Oh yeah, I also talked about no dilution of ownership(existing shareholders taking up the shares)
It was for 5 marks. Hope I at least get a 3.
Things I noticed which people are asking about:
the money Market Hedge question – the interest rates were given in 6 months, so you did not need to calculate them. That nearly got me stuck until I saw.
The WACC calc – I got quite a high preference share Kp, as it was the nominal % over MV, I got a high Kp than the Ke. I was very confident with my WACC calcs and that’s what I got. Cant remember the overall WACC however marks wise it does not matter a huge deal, it is the workings before.
The MCQ’s were horrid though, some were pure guesses, others were calculated guesses.
Rights issues I talked about:
Issuing shares to existing holders for a discount price.
Issued at same mixture as holdings as to not dilute ownership of company.
Do not change shareholders wealth unless they decide to do nothing.
Easy way to obtain finance for a company.Rationing:
Hard Rationing – external factors. Banks not lending, recessions, lack of assets to provide as security etc.Soft Rationing – internal factors. Company investment policies, other policies which may stop an investment being allowed.
Overall I believe I passed this exam, however the MCQ’s were really difficult as they ask things which never really come up in tuition or revision.
Some have said that both WACC and NPV were 11 marks….but then how many were the remaining questions? business risk vs financial risk, capital rationing, rights issue, profitability index, two types of risk. I think both Q31 and 32 were for 20 marks each.
@trishee said:
The convertible bonds have a market value! (Conversion value*discount factor of final year) + (interest*annuity factor)Do you remember the option was it D) let me know ..
@dreamersk said:
Some have said that both WACC and NPV were 11 marks….but then how many were the remaining questions? business risk vs financial risk, capital rationing, rights issue, profitability index, two types of risk. I think both Q31 and 32 were for 20 marks each.NPV was 8 marks, pi was 3, capital rationing was 5 and two types of risk was 4.
WACC was 11, business risk was 4 and rights issue was 5 I believe
In mcq,
Euro denominated bank loan
Dinar denominated Overdraft..Not sure with the question..
Was its answer is neither 1 nor 2..
Anybody remember??
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