FMACCA FM exam was – September 2021 Exam – Instant Poll and comments

Thought that the tax savings on capital allowance netted off with the depreciation will give the taxable figure. Maybe i am confusing with TX paper.

Yea i had no idea how to do it, so just guessed, i was trying to work it out and then thought i'll waste time so left it. For the creditor hierarchy i said debt cheaper then equity, does this question go back to the law exam?? like for god sake. I think there is one question on relative finance costs in the kaplan exam kit which was mentioned in that question. I might check this tomorrow need a break. Did you get the ROCE mcq question could you work it out i totally blanked on the denominator, so had to guess

I assume, we're talking about different questions. I've got hierarchy question only in section A.

Ok i made a mess of the npv question

No i think you got it right

On Part A and B were more theory questions than calculations. I had a question for forward rates, one for forex , Miller and Orr & Baumol model. On question 31 After I finished the exam I realised that it was a cash flow and I needed to put back the depreciation and the sunk cost ??, the 8 marks were missed. I hope to get 0.5 points for the layout and because I added the TAD for the first year. Question 32 was a standard WACC calculation, equity cost was based on DVM model ( I hope) . The hierarchy creditors I had not clue the term but I associated with the risk of the various type of finance, saying the equity is more risky, but has more return , how equity finance can be raised, etc. I don’t have a big hope for this exam because of the NPV-8 points is a big chunk that can make a difference :( . Overall the exam was not hard, was tricky and drilling my brain to ensure that I understand all the concepts.

Am not sure but normally the tax savings capital allowance is available against depreciated assets. Taking out the depreciation means there should be tax savings on capital allowance

My answers 1B 2D 3AD 4BC 5B 6C

Fayefitz Why added back research and development.to me it is sunk cost not incremental.To me only depreciation needs to be added back in profit to reach cash flows.not sure I am right or not

Hi syed, i made a mess of the npv question

LOL, was thinking the same. it must be Thanos, its like they dont want us to get them right

Depreciation needs to be added back in accounting profits to get cash flows.is not it?

Did anyone get the current market value of convertible debt question for some $2.50 per share growing at 6% and the redemption value of the shares after conversion was less than the nominal value of the bond? They asked for the current market value so I'm assuming it should be based on the nominal value of the bond at redemption since it's higher right? Moreover I couldn't find the figure based on the conversion value amongst the options. Also there was one question regarding the WACC and cost of debt graph with tax, i took the graph with the straight downward sloping WACC curve, not sure if that was correct though. I must say the MCQ's kind of sucked. Also does anyone know the answer for the behavioral finance question regarding the informed investors contributing to the stock marker bubble being true or false and the uninformed investors making irrational decisions?

Can you ask these questions from sir john.so everybody at least has an idea how many of them are correct.

3v6...man wat was that, section A and B was intense

It was more than nominal value

it was nice, my 2 questions in section C were NBV calculation which was straightforward although i forgot to draw my conclusion :) it has had 12 degrees as far as i remember and second question in section c was undercapitalization case with its related ratios. both were good thank god

I had the same paper as you I think. I added back the amortization and depriciation that had been subtracted. The capital allowance confused me so i just charged a full years depriciation as tax saving. I have no idea if thats wrong or right. My NPV was positive.

Did you find any discount factor to arrive at the market value of convertibles? There were no discount rate provided. The value of loan notes were given so i calculated the irr of the loan notes and used that rate to arrive at market value of convertibles

I had the same MCQ questions- think a lot of them were brinking on ambiguous.

i got these questions as well. Not totally bad at all.

Has anyone encountered a NPV question like that one that appeared in the Sept exam..it was a super weird question. I have not seen anything like it .