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

@elie1lwin said:
i got 2 negative npvs too in ques 1. Not sure if its correct because i translate the $ investment for land & buildings & working capital into PP & NR to get Net cash flow & translate it back to $ again. Hope I didnt screw up. I didnt managed to finish the report but finished calculating both Npvs.

By the way, did anyone attempt question 3 its kinda like a reconstruction sum where we have to draw a new SOFP. I was wondering how everyone calculate cost of equity there.

The question give us beta asset, so with that we can get ungeared ke (ie kei) then do we search for geared ke with M&M formula? Or do we use kei in WACC formula?

Thanks.

I attempted Q3. Question provided Wacc, cost of debt and capital structure so all inputs to calculate cost of equity. Then you had to ungear equity beta and calculate asset beta of cinema business (asset beta of fitness clubs was given).

Regarding Q1 I have also obtained two negative NPVs, which was little bit confusing. Assuming that maximum remittance was up to 60% of taxable profit (I also assumed that at the end of the project remaining cash flows will not be recoverable and are “included” in salvage value) the result couldn’t ve positive. For me this question was unnecessarily complicated because calculations were not sophisticated. I wasted too much time on this question and wasn’t able to finish 2 optionals..

Question 1 too long…full of meaninglesss details. Time pressure..
..i got 46 in june…i think i did worse in september :)) never give up

I also got 46 in June, I started on Q4 and completely run over on time. I stupidly started Q3, got completely stuck, spent far too much time and was left with an hour for Q1, didn’t read the question properly and messed it up. I did pretty much the same in June, so I’m expecting a similar result. The problem for me is definitely the length of the question, I don’t feel like I have time to read it properly. How many times has everyone else sat this exam? This is my 3rd time, it’s becoming embarrassing.

I assumed the same for the scrap value and put it at the end but I didn’t do anything for 40% unremitted to parent.

I got 2 negative npvs and got confused because i thought one of them must be positive.
Anyway the question is too confusing for me with the exchange rate adjustments and everything.
For question 3, I didn’t notice the equity beta given and because asset beta for club was given, I used the beta asset in the CAPM formula to get cost of equity ungeared and use M&M formula to get Ke. (Not sure if i screwed up for this.)
I couldnt finish question 3 because i was running out of time

Yes I assumed the same, lets hope for the best, hopefully our approach is right (I mentioned this approach in assumptions as well)

@d019452 said:
I also got 46 in June, I started on Q4 and completely run over on time. I stupidly started Q3, got completely stuck, spent far too much time and was left with an hour for Q1, didn’t read the question properly and messed it up. I did pretty much the same in June, so I’m expecting a similar result. The problem for me is definitely the length of the question, I don’t feel like I have time to read it properly. How many times has everyone else sat this exam? This is my 3rd time, it’s becoming embarrassing.

@d019452 said:
I also got 46 in June, I started on Q4 and completely run over on time. I stupidly started Q3, got completely stuck, spent far too much time and was left with an hour for Q1, didn’t read the question properly and messed it up. I did pretty much the same in June, so I’m expecting a similar result. The problem for me is definitely the length of the question, I don’t feel like I have time to read it properly. How many times has everyone else sat this exam? This is my 3rd time, it’s becoming embarrassing.

i have sat this exam more no. of times than any other exam in my life! F9 was too easy and i enjoyed it too.. never thought would hit this stop at P4 though.. it sure is embarassing, but we have only one choice dont we? just keep trying again and again and again..have invested far too much time & money in ACCA to quit now. >.<

I initially got two negative NPV’s due to the 60% remittance but once I added back the sale cost (which was in year 4, at PV), I got a positive figure for both. Did everyone add back the sale which was in PP?

This was a very tough paper.

The hedging on interest rates was a standard question which comes up a lot, so I felt OK with that, the other Section B question was a nightmare.

Guys, wat did yu get as the unexpired basis on qns4 futures

@jimbob1212 said:
I initially got two negative NPV’s due to the 60% remittance but once I added back the sale cost (which was in year 4, at PV), I got a positive figure for both. Did everyone add back the sale which was in PP?

This was a very tough paper.

The hedging on interest rates was a standard question which comes up a lot, so I felt OK with that, the other Section B question was a nightmare.

I add back sale value of the project in year 4 but still get negative npv. Maybe the difference is because of the investment in land & builiding & working capital. I convert the $ value into PP.

Hi All,

Can you please mention the areas of syllabus tested in Sep attempt.

Thanks in advance.

Q1 was really really tough….the remittances, the double taxation treaty effect on remittances, the inflation-fisher effect, the local component forex exchange, the components to be sold that you can’t even fathom where the scrap values was, and the unending treatise as of a question-it was one chunk.of a very difficult exam. I wish everyone good luck