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

What cost of capital was supposed to be used to discount the PVs in 32?

@pinkyjovin123 said:
I think for 1..Executive remuneration..because first option was separation of ownership and control provide conflicts instead of prevent..

3..It’s c

Not sure if it’s right..

What about Limitations of valuation??Is it 2 and 3…

Not sure about interpretation of answer A. I thought that being ownership and control separated may push the directors to run the business for their own sake rather for the sake of the owners. Corporate governance regulate this agency problem with need of Non-executive directors and so on.

Also what 5 Trade receivables methods did people write about?

@anthonycbn said:
Yea got 88 cash cycle gov npv of 2.+ some ugly figures the mcqs were tricky…!!! Esp the WACC mcq couldnt imagine i didnt get the ansa???

The answer is 16 % i think

@pinkyjovin123 said:
In 32 Q.Critically discuss the risk in invst appraisal method.

i wrote sensitivity analysis
profitabilty index
and risk adjusted discount rate i.e capm wat were urs..?

what was the current rations?? 2.1 and 1.9?

@usmanhassan94 said:
i wrote sensitivity analysis
profitabilty index
and risk adjusted discount rate i.e capm wat were urs..?

talked about ARR, CAPM, profitablity index…damn i forgot sensitivity 🙁

for the risks in inv appraisal I wrote

– Probability Index
– Sensitivity Analysis
– Simulation

Wrote the adv nd disadv which I believe was enough for 9 mark

@harshil said:
Q32 WACC is used 10% (the nominal one). What did everyone else use?

Same here. Used the nominal one

@harshil said:
Yes I got 2.1 and 1.9 for current ratio, I also calculate quick ratio for that question however i don’t think it was necessary

i got 2 and 1.9 aswell

@usmanhassan94 said:
i got 2 and 1.9 aswell

I got huge numbers…4.% for the opening and 2.% for the closing of January. But i know i messed up

For Q32, I think we had to take the cost of debt. The project would be financed solely by loan notes, meaning that WACC would not be a sufficient method, since no equity finance was used. I got around 2.3m NPV.

@manishjuddoo said:
yeah got the same…

if the 2nd current ratio is correct,it means that the change in overdraft also need to be correct..cant remember the figure..

around $ 475 K ?

dont exactly remember but i added the change(the change was 61500 i think) which i calculated in part b to given overdraft what was the value given in the question of overdraft..?