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Hi I felt that Q4 of the June 2012 paper was completely different to any i have studied in the past, i feel so gutted as I knew the questions what the scenario question was so different to what I have seen before. Was this predicted in anyway? Past questions have always given the capital structure of the company & share prices, i felt robbed of 25 marks & knowing that I will have to retake. Gutted.
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i fully agree
i find it so frustrating when you spend 3 months revising and then they give you a question that is not clear in the syllabus… Q4 was a total nightmare and the theory was irrelevant to the question…Maybe we will all fail and ACCA will get anothrt £80 off us for next exam fee. If i knew ACCA was anti student i would have gone to CIMA… I am so annoyed at ACCA. I even thought about quitting and taking up a new career.I am not sure what you mean.
The examiner has tested PE ratios many many times (part (a)) of the question (4 marks)
For part (b), the current cost of equity was very standard (using the equity beta which was given). The use of the dividend growth model in this situation was a little unusual (6 marks)
In part (c), the current WACC should have presented no problem, although because of part (b) the new WACC was more tricky (6 marks)
Part (d) did not require any of the earlier calculations and was very standard indeed (9 marks)
Overall it was certainly a tricky question in which to get very high marks, but there was enough standard things in the question to be able to get the necessary 50%.
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I think its unfair about how they word the questions. Question 4 was a nightmare.. you are expected to work out the P/E which is Share price / Earnings per share.. Yet they didnt give you the number of shares… I think everyone should write to the ACCA ( i have ) and say how unfair this exam was.
Please can everyone email ACCA
Hopefully they would take our frustration on board and lower the pass mark slightlyQuestion 4 did not ask you to calculate the P/E ratio. The P/E ratio of a similar company was given in the last line of the question and you were asked to calculate the value of the company.
Just as the share price is the P/E ratio times the earnings per share, the total value of the company is the P/E ratio times the total earnings.Hi John,
which dividend were we suppose to use in the dividend growth model ?
what was the growth rate and cost of capital?I think I did the exam well in overall.thanks a lot for your guidance.
wish you luck for the future.The market value is the present value of future dividends discounted at the shareholders required rate of return.
So the dividends at time 1, time 2, and time 3 will simply be discounted at the cost of equity already calculated.
For time 4 onwards you use the formula with the Do as the time 3 dividend and the growth rate as 3% (from the question) and then you discount for 3 years (because the stream starts 3 years later).- Topics: 0
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I passed !!!
How did you get on Harjit29 ?
@kamsingh01 said:
I passed !!!Congratulations 🙂
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