FM*** ACCA F9 June 2018 Exam was.. Instant Poll and comments ***

I had a completely different paper than all that is stated above.My MCQ was difficult and Section C consisted of NPV and working capital management.

It appears that your exam is similar to mine? Regarding working capital managemen? Is the Company overcapitalized?

@dneogy91 said: I had a completely different paper than all that is stated above.My MCQ was difficult and Section C consisted of NPV and working capital management.

@seishirou said: It appears that your exam is similar to mine? Regarding working capital managemen? Is the Company overcapitalized?

I wrote over capitalised.what about you? Do you remember the answer of NPV question?

@dneogy91 said: I wrote over capitalised.what about you? Do you remember the answer of NPV question?

yeah, same answer like me. I do not remember exactly the answer of NPV. I am just confused that as the price and fixed costs are in nominal term so I decide not to inflate it but only working capital. My NPV is derived at $1,9xx,xxx

@seishirou said: yeah, same answer like me. I do not remember exactly the answer of NPV. I am just confused that as the price and fixed costs are in nominal term so I decide not to inflate it but only working capital. My NPV is derived at $1,9xx,xxx

I thought the fixed cost was in real terms.

Anybody remember the MCQ on economic risks full answer option on the chinese subsidiary? And does anybody know the exact answer? A lot of students including myself are confused whether the answer was really the 3 year loan option.

Anybody remember for economic risk MCQ whether it said that the chinese subsidiary's sales and cost of sales were done in euros?

I Dint Got The Economic Risk Question You Are Stating , My First Question was About Green Policy Like That , Where I Choosed Option c and D , Carbon Tax and Something ... So Nobody Got Figure On Simulation In Section B ??? - It Was Horrible ............

rather i got Mcq of foreign exchange where round off was in two digits , answer was 1.67 i guess .

Another MTQ i Remember On FOREX was Something Greater/Less By 863 ...... I Guess , The Option Was B .........Anybody Remember ????

@dneogy91 said: I thought the fixed cost was in real terms.

@@ I remembered that I re-read many times the questions state that the fixed cost is also in nominal term. Anyway, I think that the answer applying nominal or real team may not significantly vary

@khaloodk said: Sales price 100 for first two years and 90 for year 3 and 80 for year 4. VC 50 with inflation of something 2 or 4. FC 12000 with inflation every year. Working capital investment 5M and investment 60M and scrap value 25000 tax rates 25% and tax allowable dep 20%

I have the same... what about the other question in section c the company shall go for discount right the factoring was expensive

@seishirou said: @@ I remembered that I re-read many times the questions state that the fixed cost is also in nominal term. Anyway, I think that the answer applying nominal or real team may not significantly vary

I think our questions were different because I didn't have any working capital in the cash flows.

@dneogy91 said: I think our questions were different because I didn't have any working capital in the cash flows.

It seem that they are different. My questions regarding working capital has the information that gross profit margin is 20% and NPV has the information that WC in real term

@seishirou said: It seem that they are different. My questions regarding working capital has the information that gross profit margin is 20% and NPV has the information that WC in real term

Yes regarding working capital question,i had the same gross profit margin but in the NPV question I didn't have any working capital,just sales,variable cost and fixed cost.

@seishirou said: @@ I remembered that I re-read many times the questions state that the fixed cost is also in nominal term. Anyway, I think that the answer applying nominal or real team may not significantly vary

Same here, I don't remember the exact answer if the discount method was used but the factoring was (80,000).

@dipatil said: I have the same... what about the other question in section c the company shall go for discount right the factoring was expensive

Same here, I don’t remember the exact answer if the discount method was used but the factoring was (80,000).

Stock split is when a company divides its shares into mutiple but the overall value of shares remains unchanged With the IRR approach to cost of debt we should take the MV of 102 which was given in the question i got my cost of debt something between 2-2.3

@vixengard said: Did anyone have a q in section b about stock split??? What is this seriously. And another about environmental externalists or something? Some very odd things coming up. I think I messed up with WACC q with pref shares and also value of debt and cost of debt. Was it an IRR approach require? Also confused me becuase they gave a market value of 102 but the mv I calculated was only 97 so I wasn’t sure what to do... ? Simulation question was awful I wrote a whole page but really had no idea what because I did not read the text book and had no idea what simulation is so have the concept completely wrong. Also another q in Sec A re: commercial paper issue and how much would each paper cost? Does anybody remember this? I think I will be seeing this paper again In September.

@farhanahaque said: i also got 8.5% for WACC so hope we done that correct :) and not to sure about my NPV

Same answer of wacc... ;-)

Did anyone get a question related to share option scheme where they were asking to calculate the annual interest cost?

@khaloodk said: Stock split is when a company divides its shares into mutiple but the overall value of shares remains unchanged With the IRR approach to cost of debt we should take the MV of 102 which was given in the question i got my cost of debt something between 2-2.3

So the the answer might be correct if they said that a stock plit will change the nominal value of a share?

The nominal value will remain the same

@chally said: So the the answer might be correct if they said that a stock plit will change the nominal value of a share?

Share repurchase *

@khaloodk said: Did anyone get a question related to share option scheme where they were asking to calculate the annual interest cost?

@khaloodk said: The nominal value will remain the same

For e.g lets assume a share has a nominal or 1$ per share. And the company makes a stock split of 2 for 1 of 50c each. The total nominal value of the company remains the same but the nominal per changes.

Exactly

@chally said: For e.g lets assume a share has a nominal or 1$ per share. And the company makes a stock split of 2 for 1 of 50c each. The total nominal value of the company remains the same but the nominal per changes.

so the answer was right? i recall it was the value per share?

What were th other options?

@nayazrojid1 said: so the answer was right? i recall it was the value per share?

Centralized mgmt - savings on bank fees due to centralized acct, possibility of hiring financial market specialist, better control of financial mgmt function 2 cash mgmt models - baumol and miller-orr, did not write much as this was only 4points question Simulation - don't remember the question And what about the inflation? It was 7points worth, and I had only few ideas what to write...

1 D 2 C 3 B 4 C 5 A 6 B 7 D 8 A 9 D 10 D 11 B 12 A 13 A 14 B 15 D 16 B 17 B 18 D 19 C 20 A 21 B 22 B 23 D 24 B 25 A 26 C 27 B 28 A 29 B 30 C Pease share your answers, if they are match with my choices.

I did sensitivity analysis in the final question in Section C (8 marks) where it asked you to do a simulation. I'm unsure if this is right but I think this is one method you could choose so should be okay. Section A was tough.