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

@twistedheat said:
I don’t remember the question, or what answer I gave.

I just remember doing 365/turnover ratio to get the days, but everything else is blank about that question.

The answer to that question was D. it was in the 300K’s. It asked how much working capital would need to reduce by to get another turnover ratio.

You have to work out the days with the current, days with what the new turnover ratio would have been, the difference between the two is the reduction in days and that over the total number of days in a year assumed multiplied by the sales would give the overall reduction.

@adlupu said:
Net asset value – I choosed only B, NCA

It is NCA + net current assets less liabilities.

@twistedheat said:
The option said under strong form someone could make abnormal profits which is impossible as strong form immediately includes all information, public and private, into the price and so not even insider trader can beat the market.

The only option that made sense was semi-strong form as that does incorporate all past movements etc, (plus it anticipates certain news such as mergers before official annoucement and it also reacts very quickly to other news).

Can’t remember what the weak-form option was but that did not seem to make any sense either.

So just through excluding the ones that did not make sense, semi-strong form was the only one that did in my opinion. I could very easily be wrong though.

Seems I got it wrong.
Do u remember the question which says what is the least expensive option regarding spot rate and forward rate?
What’s the answer for this?
Also the Wacc calculation I choose 14.7/14.6 something as I included cost of bank loan aswell.

And one more question about book value , share price and current asset -current liability can’t remember the question .

@aminb001 said:
Technically Net Asset Value = Total Assets – Total Liabilities.

There both elements of NCA and CA-CL would be important.

All thats missing is the NCL which would be the last figure needed.

So i would assume it was atleast options 2 and 3?

Do u remember other options?

@aminb001 said:
Opt 1 – Market Value of Equity (Obviously Wrong)
Opt 2 – Book Value of NCA
Opt 3 – CA – CL

So Both even though both opt 2 and 3 don’t give overall Net Asset value, both options added together give most of it. Just NCL is missing basically, so logically both 2 and 3 should be the answer…

Net assets = equity I think

@gawcram said:
Net assets = equity I think

Correct. Thats if its the Book Value of Equity.

The option state the Market Value of Equity which is using the Market Share Price, not whats all the Balance Sheet.

Mcq -there was some Q of theoretical value of loan note

Is it option A)

Mcq-International fisher effect??

Is it option D) Future spot exc rate will be diff with Forward exc rate..

Does anyone remember???

Same, Musharaka, I did process of elimination here based what I remember of the other choices

It’s strange, I took the CBE and I didn’t have some of the questions being discussed here.

Q31 was on NPV using inflated sales and costs with straight line depreciation. My NPV was 2.5m

Q32 was all about working capital and a 10 mark question about receivable techniques which was nice.

Did anyone have a question off Lease vs buy in part B? The buy option involved taking out a loan at 9% but the question didn’t say how or when the interest would be paid. That threw me a little

I took Paper based in Dubai and we have the same Q31 and Q32 but we did not have any Lease or Buy Questions.

CBE questions are different than Paper based ones.. I took F8 CBE and when I went to the F8 forum they were discussing about questions which were not on my CBE exam.

@pinkyjovin123 said:
In q no .32 should we add bac TA Depreciation..

We add back 28% of the T.A.D in arrears (starting from T2).

@aminb001 said:
We add back 28% of the T.A.D in arrears (starting from T2).

Hi add back means is it before tax cash flow and after tax cash flow or just once ..