FM*** ACCA F9 June 2017 Exam was.. Instant Poll and comments ***

Multiple choice question with 40% taking the 2% discount paying in 15 days. I went with d something like 168k Also the mcq with the buffer stock. I had 412k

@louiseabigail said: Multiple choice question with 40% taking the 2% discount paying in 15 days. I went with d something like 168k Also the mcq with the buffer stock. I had 412k

2% discount? Yea option D . Not sure about buffer stock. How about equity beta and fra? I got 1.16 for equity beta and 37500 for fra

@acca145 said: What about capital rationing? I think that was small point for 10 marks...

I wrote a page and a half on capital rational about hard and soft rationing. About related projects. About captionrationing being out of their control ie they dont have enough to finace the projects. About profitability index and divisible projects and choosing the best schedule

@surajnair said: 2% discount? Yea option D . Not sure about buffer stock. How about equity beta and fra? I got 1.16 for equity beta and 37500 for fra

Same for fra. Complete blank on the beta question so i guessed

What in the hell was "optimal investment schedule"????

@mrampersad said: What in the hell was "optimal investment schedule"????

Project divisibility and stuff

For optimal capital structure i wrote about modigig and miller after tax theory about gearing ect.

For MCQ, one question regarding the advice to engineer on using which beta rate, the question given beta and DE ratio, what should we do on that ?

@surajnair said: 2% discount? Yea option D . Not sure about buffer stock. How about equity beta and fra? I got 1.16 for equity beta and 37500 for fra

How did you calculate the fra?

1A 2C 3B 4A 5C 6C 7B 8B 9D 10C 11C 12A 13D 14C 15B 16C 17B 18D 19B 20A 21B 22A 23A 24A 25D 26A 27C 28A 29D 30B For 31a something around 11.6 or nearly 12%, for 32a 63,308 positive

First time I took the CBE but does anyone know if section C of the written and computer exam questions are different? The NPV you guys are getting at $63 million is way off mine - my figures given in the question were not this big.

Hi guys! How about questions related to account receivables after 2% discount? Anyone remember? I got $1.648 m so it was option D. The same with average inventory level - i got $412 m - option C. But i was not pretty sure about my calculations... for 31 i have not even tried...

I had a cost of equity of 12.1% For the 7% loan note I had a cost of equity of 7.1% Bank loan had a cost of equity of 8.5%

I had a cost of equity of 12.1% For the 7% loan note I had a cost of equity of 7.1% Bank loan had a cost of equity of 8.5% And a WACC of 11.8% if am not mistaken.

@acca145 said: It was asset based valuation and Its answer was total assets less total liabilities, I think b

I too had a negative balance for year 4 and 5 But I can't recall my exact NPV I think it was +ve sixty something million

Easy exam i think. 31, WACC= 12.68% b I merely just spoke about the 4 structures approaches (traditional, both M&M, and pecking order), and explained how they try to achieve the optimum capital structure aka, where WACC is lowest, wasn't quite sure what else they were asking. 32. NPV: 63.3m i think b simply explained what the term meant, the types of rationing, hard/soft. Explained the purpose of NPV in relation to shareholder wealth, then talked about profitability index and use of combination for indivisble projects. Out of the multiple choice, think I got around 20/30, the rest were more or less guesses.

Arif, I think you're right on the way incorporating the inflation, that's exactly how we should do it. On that note, Q 32a I can't quite remember was actually selling price and variable price the same (in current term, not incorporating inflation) all of the four year? If it was not I may have given wrong answer just bacause I didn't look at the question carefully ??? Can anyone clarify this?

Arif, I think you're right on the way incorporating the inflation, that's exactly how we should do it. On that note, Q 32a I can't quite remember was actually selling price and variable price the same (in current term, not incorporating inflation) all of the four year? If it was not I may have given wrong answer just bacause I didn't look at the question carefully ??? Can anyone clarify this?

@mdarifansary16 said: Question 31: are we supposed to include the cost of bank overdraft in the WACC calculation?????????? Question 32: what should be done with variable cost inflation which was $52 every year? Are we suppose to do variable cost as 52*1.03 in year, 1 52*1.03*1.03 in year 2, 1 52*1.03*1.03*1.03 in year 3 & 52*1.03*1.03*1.03*1.03 in year 4? or something else????????

What was the answer of the mcq regarding fiscal policy???

I got the same answer as you. What did you get for the FRA one?

Yes, the discount payback is 3.4 years, but i think the answer is B or C.

I had a wacc of around 7.3% Cost of equity= 49×1.05/7.26 -49 or something MV of equity = 15/0.5 x 7.26 Cost of debt= 6.8% using interpolation and irr MV of loan notes=10000000/100 x94 Cost of bank loan= tax relief so 6.8% as well Book value= 5m Feel free to correct me as to where I wwant wrong

Omz My answer is different as it relates to MV= 15/.5 x (7.26x.49) Wasn't sure whether to use ex div or cum dic. With WACC ending up at 12.6% i think

@ecbs5 said: Yes, the discount payback is 3.4 years, but i think the answer is B or C.

Discount payback is 2.2 .

Pretty sure it was 3.38 rounded to 3.4

What was the answers for FRA ...??? And MCQ about equity betas ... where engineering company wants to expand in shipping ... there was debt / equity 50% for other company 25% ....i tried sooo hard at least spend 30 min in it ...coundnt match

Beta should be calculated throug debt/ equity ratio If debt 25 then equity 75% 75% of first beta and 50% of the second beta That was my idea, I got 1.17

Waac 12,55% NPV 103 Could anybody explain how to solve receivable problem? 2.25*40%*15/365+2.25*60%*41/365?

Anyone remembers Ot questions of NPV. Can anyone share?

@sunnydeol89 said: Pretty sure it was 3.38 rounded to 3.4

1800 investment was made in year 0. In year 1 and 2 discounted cash flows were 663 something and 1050 something.. that's how i got 2.2. Wait was it cash profit or operating profit?