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

@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.

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

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?

@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.

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…

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.

Early settlement discount was more beneficial.

How did you manage to remember your multiple choice answers ?????

@vixengard said:
Did anybody have 8 marks on simulation? Please can you share your answers?

I had an 8 mark simulation. I thought we were not supposed to have to calc out a simulation but understand what it was. I did s sensitivity analysis on every factor I could and outlined what a simulation was and how it would be useful. Did you do something similar?

@chally said:
Factoring gave me a net benefit of 60,000
And early settlement discount gave me a net cost.

Yes I got Something Like That .
-100000 In Early Settlement
62000 Something On factor …

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But when do we get to see the paper we wrote as a past paper.