*** ACCA F9 December 2017 Exam was.. Instant Poll and comments ***

Surely all 3 were relevant for financial management, including financial appraisal?

@laughingcoffin said:
ROCE = Avg Profit / Avg Investment

Avg Profit
Total Profit / Number of years – Depreciation

Avg Investment
Investment + Scrap Value / 2

ROCE = 37%

wy are we taking depreciation to calculate avg profit?

I choose 1,2,3 for financial management purposes

For Roce
I added all profit took out depreciation and then divided by 4

For initial Inv + scrap divided by 2
I don’t remember the answer

I answered all 3 too Ricky.

In question 31 after finding conversion value the loan notes were convertible so i found the cost of debt from them and thats how i got WACC around 5 i dont know if its correct as most of you are saying around 12. I got ex dividend by subtracting current divided from cum dividend and used it to calculate Ve
In the dividend policy part b just wrote about Retention and inflation and limits on dividend distribution is to be considered and exaggerated it.

In Q32 i inflated the contribution and fixed cost by the specific rate and i discounted using the 10% rate for part a

For part b i didnt inflate sales and contribution and discounted at 6%

No idea if thats correct but it felt right

@amirawasim said:
what I did was wrong…what you did is right. Do you think they will give me any marks for it even though it was wrong?

I was thinking the same. Normally according to bpp they give marks for the reasoning if it’s alright. But i’m not sure at all… I guess it depends .

@elenarus said:
does anyone remember the answer for the ROCE:
smth like “company should not undertake the projects with ROCE less then the average of the company” ?

to my mind, there were answers like:

– an investment with roce lower than the company’s roce should not be approved.
– an investment with roce more than rate of return should be approved (that was my answer).

@maxxskeleton said:
Not USD 3k, is around USD500+ you need to calculate the interest, not the whole loan itself

Which question are you talking about?

It seemed Easy at thé moment but when reading your answers it looks obvious that i failed

@maxxskeleton said:
Not USD 3k, is around USD500+ you need to calculate the interest, not the whole loan itself

Yes interest only
But I remember my answer with forward rate peso /$ was 12000

@jmmyjimmy said:
i chose that the mv may increase even if the dividend is cut (on the basis that dividend cut will inrease earnings). no idea, whether it is right or wrong. 🙁

As I remember reading that option it said dividend cut may increase share price.
With your logic it may be right
As even m not sure
I chose on the base that it was to do with behavioural aspects , share price prospects might urge investor to invest
It was a random guess

Was it correct to deduct 25% corporation tax off interest In wacc loan calc?