*** ACCA P4 December 2017 Exam was.. Instant Poll and comments ***

Hi everyone,

I did as follow as I remember:
Q1 b i)
Current bond value 107.8
Coupon rate 5.2
New value 106.7
Coupon rate 5.57 (5.2+0.37)

5.2/1.1+5.2/1.1^2+105.2/1.1^3=88.06

5.2/1.02+5.2/1.02^2+105.2/1.02^3=109.22

Irr= 2+((109/(109-88))×8=2.47

ii)

Gov rate y1 y2 y3 y4 y5
2.2 2.3 2.4 2.7 2.9 estimate
BBB. .4. .6 .8 .9 1.1estimate
Total. 2.6 2.9 3.2 3.6 4.0

5.57 5.57 …………105.57
1.026 1.029^2… 1.04^5
4.40 4.30 ………. 87.18
(4.4+4.3×2+….+87.18)/105.57=4.7 years

Gov rate y1 y2 y3 y4 y5
2.2 2.3 2.4 2.7 2.9 estimate
A. .3 .5 .7 .6 .9estimate
Total. 2.5 2.8 3.1 3.3 3.8

5.57 5.57 …………105.57
1.025 1.028^2… 1.038^5
4.5 4.4 ………. 91.2
(4.5+4.4×2+….+91.2)/107=4.5 years

I used here for Gov yield and A BBB spread just estimated as I can’t remember but what I remember it was 4.7 years and used face value in first duration and 4.5 years and used MV

I am just shocked as examiner really grilled me buy makeing thinks very complicated for easy topics

Wish all of you a pass mark

The assumption is the bond yield remains the same. I calculated the yield for the bond; then i applied it with the new coupons…and get 110….point something . Let me know if it makes sense or no

I think the question was tricky but manageable.

I personally realised the only way to get a good mark for question one was to assume some of the figures.

But for sure I will not be able to make it .It was the toughest Section A question that I ever came across!

https://opentuition.com/members/lolo822/ Hi I wondered how you did, I looked on Wednesday and Thursday on the p5 forums, why did you think it did not go well in the actual exam, did you go through the revision book twice -I saw your post about that. I think you can tell,please try not to give up hope, was it better than last time?

I started a new job too in October and feel the pressure of having to pass ( they haven’t said I have to but just think it doesn’t seem ok to fail again ).

It went better for me but not the last question, hope the first two were good enough to make up for the last one and they can read my writing, I think I can’t bear to do it again as the children say how much they miss me, but we can’t give up we got this far and your weren’t far off last time, I think you could surprise yourself. I was positive I failed P2 but I passed really well and was so shocked. I think you defn still need to have hope, try not to be sad, and enjoy the exciting time of Christmas, pause the sadness and maybe there will be happiness in January xx

I so hope you pass, il keep everything crossed for you, I hope they haven’t fixed the link and we find out on the Thursday, you have a lovely Christmas too and I see you on the countdown threads x

Well i guess TAD was to be added back there not tax.. not sure may be i have ruined everything

First attempt at this paper and was for sure the hardest to date. Ran out of time, there’s way to many calculations for you to work out then be expected to write essays about too.

Bit disheartening to seemingly be the only one I can see getting a negative NPV on Q2, although surprised how many didn’t know about the Monte Carlo simulation.

Thought Q3 was quite generous, work out some ratios and trends and comment on missing info that would be beneficial. I mentioned about having no competitor info to benchmark as the main missing info.

All in all, not expecting great things!

Hi! Can anyone recommend me a provider of courses? I already gave P4 2 times and December was quite a disaster (I don’t expect getting more than 30 points although I was studying since June approximately 3 hours/day). I really need a support to pass this exam. Thank you for all your recommendations.

This is my last paper, I was hoping to complete ACCA exams by this year.

But P4 is totally disaster for me. I did not have enough time to review all in the revision kit, just had a look through. There’s something I did not really understand but still accepted that. Besides, I was so tired during my first months of pregnancy.

I will resit the exam for sure. Many people I know had to resit P4 3-4 times to pass. So I cheer me up, spend time studying properly, and try again in March.

Good luck everyone!

I also had a bit of a disaster as I realised on the way hom in the car I missed an important part in Q1.

Surprising though no one really commented on it here though for Q1 that the Cost of Capital was missing from the detail?

The Risk Free Rate was there and the Risk Premium along with the Beta Factor for another entity which I did take note of however as the Cost of Capital wasn’t there this should have triggered alarm bells telling me to calculate the Beta Factor for the Co. we were looking at and then value Debt-Using Yield(1-t) and Equity-Using CAPM of the Co. we were reviewing to get the WACC.

I think these would be valuable points missed out on for not doing this.

May be I have the wrong question but I am sure this was for Q1?

Difficult Paper all the same and not enough time to be constructive however if you have responded to eahc question to the best of your ability then its a judgement call by the Marker.

Good luck to everyone.

Q1 was not friendly at all, the examiner seemed biased with only bonds in Q1 really!!!????? very unfair. I thought it would involve a mix of topics but “gosh”!, terrible!!!!!!

The struggle continues, from the exam i realised i had not made it to the dot, and i have started preparing for March sitting.