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

I really wasn't expecting the NPV question about the joint probability, just had practice about 1-2 times only.... Should have revised Text rather than revision kit. Ruined all of my marks. Not a good expectation about the result..... thinking of reading again..... F9. Reading again It was a disaster for me... Should I read again? And take again in june ??

what a disaster section C; Was expecting a WACC, working capital and/or NPV investment appraisal as per the previous past papers. Never even heard of joint probablities tables before.

hi guys, what questions came up on section C of the paper? i am sitting in june 2018 and would appreciate any advice please thank you

There was an expected NPV with joint probabilities. And TERP, rights issue and debt finance of business expansion.

What a disaster! This is going to be my first fail... I am so dissappinted as I studied really hard and completely ruined the joint probabilities question- I never came across it! What did you guys get for the WACC calculation? And how did you comment on the behaviour of WACc if the conversion was taken out? I hope you did better than I did!

Where did you sit your exam? I know that the computer based exam had at least 2 versions as the guy that sat next to me had completely different questions.

What did you choose at the first question? b) ?

Also Islamic finance, And simulation, risk adjusted discount rates and discounted payback.

@aturkis said: In Manchester. I hope so, unless I've missed something :D

Haha yes don't worry. I panicked when he started asking me about islamic finance question I was like whaaaat! But then we worked out the questions were completely different

Hello there what interest rate you taken in irpt McQ borrowing or deposit

Yes right

Why you guys think joint probablities was hard? Ok smth different than usual but i see most of you being stressed because of that question.

@dg1020333 said: Why you guys think joint probablities was hard? Ok smth different than usual but i see most of you being stressed because of that question.

I simply never came across it and could not work out how to tackle it....

I got section B: sensitivity analysis, FX forward rates/hedges, and business valuation. Section C: grout co.... lease v buy (DCF) and Moscow Co ... WACC I feel like acca are trying to get us to read the text more rather than practice exam revision kits because having taken f5 and f9, the questions are nothing like practice papers. They're really just testing your IQ at this stage

I got 7.78% for the WACC and just talked about the different theories M&M with tax, traditional etc. and the difference it would make if option or premium was taken using those theories. I have no idea if that is what they were looking for. The paper was hard and like you, Julia, I couldn't work out the probabilities NPV question.

Anybody know how the probabilities question should have been answered? What was the NPV?

Round about 860

@suzimw said: I got 7.78% for the WACC and just talked about the different theories M&M with tax, traditional etc. and the difference it would make if option or premium was taken using those theories. I have no idea if that is what they were looking for. The paper was hard and like you, Julia, I couldn't work out the probabilities NPV question.

I think I got something like 6.6% for WACC ... I took the same approach in the 'wordy' question. I hope for a miracle that I somehow scrape through with 50% pass but it's very unlikely...

is their any past exam paper i can refer to which have joint probabilities?

@llkkjj said: is their any past exam paper i can refer to which have joint probabilities?

Apparently it came up in June 2010... but I have not found it yet.

There is a past paper question on this. It is ZSE and came in the June 2010 examination.

@juliat said: I think I got something like 6.6% for WACC ... I took the same approach in the 'wordy' question. I hope for a miracle that I somehow scrape through with 50% pass but it's very unlikely...

I feel the same, unfortunately. Try to stay positive though, you never know

Nooo....I got 10.67% for WACC. Did you add on the fixed interest loan too? 100m at 10% or something

Yes, for the WACC I added the loan but took off the tax from the interest. Oh no, we've all got different answers

@colinjsweetman said: Nooo....I got 10.67% for WACC. Did you add on the fixed interest loan too? 100m at 10% or something

Don't panic - you might have had a different question :-) Yes I did add it, tax adjusted but I don't think it was 10% ... Can't be sure though to be honest :-)

@suzimw said: I feel the same, unfortunately. Try to stay positive though, you never know

Thank you and same to you :-) Fingers crossed very tightly!

I got the WACC question for Moscow Co. & the Lease vs Buy question. Looking back over Lease vs Buy i've definitely messed up in a couple areas of my NPV calculations forgetting to use the post-tax cost of capital instead of pre-tax, but hoping i've done enough elsewhere to get the marks. If my memory serves me right, the WACC answer i got was Ve - $175m Vd - Convertible debt - $84m Vd - Loan - $125m Ke - 9.6% Kd - Convertible debt - 7.5% Kd - Loan - 6.4% Total WACC came out between 8% & 9% (ish) It's a little concerning that everyone has different answers but at least we will score marks for workings, even if we slipped up at any point!

I think I got 860 for expected value of NPV as well. And 30% for the most likely outcome

@bg12321 said: I got the WACC question for Moscow Co. & the Lease vs Buy question. Looking back over Lease vs Buy i've definitely messed up in a couple areas of my NPV calculations forgetting to use the post-tax cost of capital instead of pre-tax, but hoping i've done enough elsewhere to get the marks. If my memory serves me right, the WACC answer i got was Ve - $175m Vd - Convertible debt - $84m Vd - Loan - $125m Ke - 9.6% Kd - Convertible debt - 7.5% Kd - Loan - 6.4% Total WACC came out between 8% & 9% (ish) It's a little concerning that everyone has different answers but at least we will score marks for workings, even if we slipped up at any point!

The WACC figures look familiar, I hope I just messed up in adding up rather than the method... can you remember your growth at all?

@kanchandhankar said: I had section C grout co…. lease v buy (DCF) and Moscow Co … WACC

Same here