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

@tpara said:
I have read book and did revision kit,mock exam, past papers several times.Also watched John’s lectures but i dont know why my answers are so different from others))

maybe you’re lacking on the conceptual front as what i have been reading in your comments. now I am no expert , but still if you need help kindly mail me, i’d be happy to help. ciao

Thank you very much

@tpara said:
Thank you very much

no probs mate, were partners in struggle lol

that is what i remember from section a (not sequently numbered):

average receivables (annual sales)
cost of equity
customers will buy from abroad
economic and transaction risk
commercial paper (5,1%)
working capital element (except sales)
cash cycle (ip + rp – pp)
riskiest investment (ordinary shares)
financial management purpose (all three)
money market hedge
loan note

can anyone remember more questions?

Questions 21 & 22 really annoyed me. In the balance sheet the 6% loan notes had a book value of 22m and had a par value of $100 per loan note. I presume we had to work out the market value from the fact the before tax cost of debt of the loan notes was 7% but my mind went blank. Anyone figure it out? The answers were like 14.7m, 19m, 25m or 29m

Apart from a few questions in part A and B I didn’t find the MCQ’s to hard, However, My time management was poor and time I got to part C I don’t think i allocated myself enough time.

I only attempted part A of question 31 and I didn’t even complete the WACC calculation as i thought it was wrong.
Ve: 50 million shares x the ex cum share price.
Vd: Not sure if this was collect but $20m / $100 * $101.17
Ke: Around 9%
Vd: I opted for the share option as it gave a higher NPV but for the calculation I forgot to include time 0 so my NPV figures before doing the IRR were probably incorrect.

I definitely messed up here and for question 32 I did even worse. I couldn’t figure out how many years i had to do, So I did years 1,2,3,4 and 5-10. but I think I had to do 10+ as the question stated that cash flows were supposed to remain at 2m.

Anybody Who Know MCQ Answer ????
First MCQ I Did Wrong – Because I Choosed Closing Balance , my big Mistake ….
I Need At Least 15-16 MCQs to Go On My Favour In Order to Be Pass Coz My Section C Dint Went Well , But i Will Score About 20 .
My MCQ were
1.C
2.C
3.A
4.A
5.A
6.C
7.B
8.D
9.C
10.D
11.C
12.B
13.B
14.C
15.A
16.C
17.C
18.B
19.A
20.C
21.C
22.D
23,C
24.D
25.D
26.B
27.C
28.A
29. A
30. B

@ali17 said:
I have read almost all the comments many people did the common mistake while calculating the pay back and mcq no 1 avg receivable or end receivable.
Pay back was 2 yrs because there was 2 part in question 1st part relates to npv and the other relates to pay back and roce. Pay back was 2 and most of people did 2.4 which is wrong pay back relates to 2nd part where initial investment was (900000) and other cash flows was in between 420000 to 480000 if i am not wrong and also people calculate the roce wrongly it also relates to 2nd part of question which was 39%. Sale is not the part of wc if you read the wc topic there is 4 element of wc receivables inventory cash and pay able and about there balancing most people ans cash which is also wrong

I think it was 2,4 years because it was discounted pay back ! It would have been 2 years if it was only the normal payback if i remember correctly. But the question was about discounted payback.

Judging from past exams, it’s either you do 4 year comparison or a 5 year comparison if tax is paid in arrears. Since the contribution and fixed costs provided were only for 4 years and tax was paid in the year it occurred m, the correct layout would be to a 4 year analysis.

Could you please let me know that in pay back question where was the discount factor in that question the discount factor was given in npv part not in pay back and roce question part

@coralienana said:
After thinking about it and talking a lil’ bit with my manager, he thinks that we should have used 4 years and have a terminal value because they stated that capital allowance was on a straight line basis over 10 years and the terminal value was supposed to be 0 after 10 years. Therefore, after 4 years, we had to compute a residual value for our DCF and do the calculation.
I asked him if doing it over 10 years was incorrect he said he thinks it’s incorrect because they just hoped that it would be 2 for the future, and that was so hypothetical that the management asked to do it for 4 years. Providing us 10 years was the tricky part of the question.

I did over 10 years and i’m now afraid i failed …

I’m so confused right now, I definitely know I’ve messed up on the last questions but the way it was written out definitely made it sound like it should have been at least up to 10 years.

By terminal value do you mean perpetuity?

I can’t recall where it was in the question. But I am 100% sure that you were required to calculate the discounted pay back – which requires you to use a discount factor. If the question had asked for the pay back period then the answer would be 2 Years.

@lukman94 said:
Yes but judging from mark allocation if they asked you to compute it for 10 years then that would require a lot more effort and time. This is just my opinion. All the very best for results day. The question simply asked you to compute the nominal NPV – If you felt the need to go beyond 4 years was fully justified then may God be with you 🙂

Yes i know 10 years was requiring a lot of calculation for the time we had and the marks allocated … That’s true …