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ACCA Paper AFM exam was – March 2021 Exam – Instant Poll and comments

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › ACCA Paper AFM exam was – March 2021 Exam – Instant Poll and comments

  • This topic has 51 replies, 29 voices, and was last updated 4 years ago by okmike.
Viewing 25 posts - 1 through 25 (of 52 total)
1 2 3 →
  • Author
    Posts
  • March 5, 2021 at 9:57 am #613481
    opentuition_team
    Keymaster
    • Topics: 1391
    • Replies: 1405
    • ☆☆☆☆☆

    How was your ACCA Paper AFM March 2021 Exam exam?

    Vote in the Instant Poll


    Please post your comments below

    March 5, 2021 at 5:08 pm #613562
    gnastili
    Member
    • Topics: 0
    • Replies: 1
    • ☆

    .

    March 5, 2021 at 5:28 pm #613573
    mintah
    Member
    • Topics: 0
    • Replies: 1
    • ☆

    Rough

    March 5, 2021 at 5:46 pm #613584
    soliver206
    Member
    • Topics: 0
    • Replies: 2
    • ☆

    What are people’s thoughts on the exam?

    March 5, 2021 at 5:50 pm #613585
    planit
    Participant
    • Topics: 0
    • Replies: 39
    • ☆

    Wow, that was tough.
    Just got completely stuck on the first question, didn’t know what they wanted us to do.

    Also really struggled trying to work out what they were getting at on the text questions.

    It was easily the toughest exam I have taken yet. Funny as I actually did the work for this.

    March 5, 2021 at 5:58 pm #613588
    dreniba
    Member
    • Topics: 0
    • Replies: 17
    • ☆

    First questions was the easiest I think – synergies were 1026.51mn I think and then allocated the synergy to both shareholders vi both offers. Gearing I wasn’t so sure off. Before acquisition it was 32% I think, with a cash offer it jumps to 40% and share offer down to 28%.

    Think I got 32% gain for cash offer for Kennedy and 33% with share for share offer. Can’t recall what I got for swift’s shareholders. 800mn shares of swift and additional 300 or 400mnn created.

    P/E ratio was 18:7 for swift and I think 12sonething for Kennedy. Total value of combined entity was 6597 or something like that

    The hedging question was difficult and I prepared the most for this. I completely skipped currency swaps so had no idea what to do. Even so, the first question about the receipts in usd and the payments I think you had to use money markets e.g take the residual and borrow residual/interest for four months but I didn’t have time to do it unfortunately.

    The last question was tough. I knew I got the answer wrong and I just didn’t know how to treat the additional tax payment with the remittances. I have done every past exam question but I just never came across this.

    March 5, 2021 at 6:21 pm #613594
    ijeoma
    Member
    • Topics: 0
    • Replies: 1
    • ☆

    It was a tough one.

    March 5, 2021 at 6:24 pm #613595
    okmike
    Participant
    • Topics: 0
    • Replies: 7
    • ☆

    The question was really quite confusing. The hedging of the reciepts and payments. only forward rates and then info on swaps, got me confused as i was expecting more detailed hedging question, I had to scan again repeatedly to make sure there was no futures or options to work on. Or may be i missed it. for the swaps I think i got it. fairly easily confusing i would say

    March 5, 2021 at 6:28 pm #613597
    Ankita1234
    Member
    • Topics: 0
    • Replies: 3
    • ☆

    In the hedging question, we had to take the net payable US $ and hegde it using forwards abd money market. Is that right?

    March 5, 2021 at 6:28 pm #613598
    soliver206
    Member
    • Topics: 0
    • Replies: 2
    • ☆

    Drenuba I could have written this response – same answers for Q1 as you and then really struggled with the rest.

    March 5, 2021 at 6:30 pm #613600
    okmike
    Participant
    • Topics: 0
    • Replies: 7
    • ☆

    oops I think you are right. so tensed i missed that. correct to net payments, lol and to think i mentioned netting in my discussuions hahaha

    March 5, 2021 at 6:35 pm #613601
    Ankita1234
    Member
    • Topics: 0
    • Replies: 3
    • ☆

    Q1 was the most challenging for me. Net Asset valuation was no where close to the valuation as per the other methods.

    I just realized that I forgot to add back interest to the profits while calculating FCFF.

    Also I’m not sure about my PE and wacc calcualtions. Anyone remember the answers you got?

    March 5, 2021 at 6:42 pm #613603
    Protonix
    Member
    • Topics: 0
    • Replies: 5
    • ☆

    My pe and fcfe had almost the same value, my net asset was defo wrong and my dgm was around 3000? i used ke, as we can only use ke for dgm. How much did yall get for dgm?

    March 5, 2021 at 6:53 pm #613605
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 1
    • ☆

    Q1 value the equity in company being unbundled using net assets, PE, FCFF and div valuation model I think 24 marks for those split into 3 8markers. Then 11 marks for discussion on the unbundling I think and 7 marks on theory and then 4 final marks for another theory topic?

    Q2 APV 14 marks

    11 marks on considerations of the shareholders or capital providers? Left this last and ran out of time so not hopeful of even getting half marks on this question.

    Q3 FX hedging using money market hedge and forward rate. 5 marks. Forward rates were 3 months and 1 year but the net receipt was in 4 months? This threw me off but calculated both.

    Currency swap 5 marks

    8 marks value a project using the swap and without the swap

    7 marks on how to manage transaction, translation and economic risk

    All in all very tough with the time given to complete and understand what is needed to be done. Not overly confident but can only wait in hope now!

    March 5, 2021 at 7:01 pm #613610
    dreniba
    Member
    • Topics: 0
    • Replies: 17
    • ☆

    Yeah we definitely had to use money markets which I am so annoyed about because that was an easy question. For whatever reason, the forward rates confused me. Receipt was due in 4 months yet quotes for forwards were only for three months and one year. So wasnt sure how to do that. I

    March 5, 2021 at 7:15 pm #613619
    Brobs91
    Member
    • Topics: 0
    • Replies: 5
    • ☆

    Q1 – unbundling
    Valuation based on net assets valuation, FFCF valuation, PE ratio valuation, dividend valuation
    with some WACC, ungearing and cost of capital involved

    All arrived at different values (pretty volatile)

    Q2 – APV

    Basecase NPV negative
    APV negative

    Project shouldn’t be undertaken based on it but it had strategic advantages

    Q3 – hedging & foreign investment

    Netting + Forward rates couldn’t be used because they had expired (3 month forwards given, receipt was in 4 months), only money markets were applicable way of hedging.

    NPV without the swap negative
    NPV with the swap positive

    March 5, 2021 at 7:25 pm #613623
    msham3
    Member
    • Topics: 0
    • Replies: 2
    • ☆

    The questions were really not like the past papers at all I found and really throw you out when past papers have a similar format but then the current paper adds in different ways of asking and questioning.

    March 5, 2021 at 8:10 pm #613633
    shishan7148
    Member
    • Topics: 0
    • Replies: 2
    • ☆

    It was a tough paper. I only wrote for 75 mark. Time management was hard.

    March 5, 2021 at 11:05 pm #613656
    jovincai
    Member
    • Topics: 0
    • Replies: 16
    • ☆

    The first question i did was the hedge question~ The question is very confusing, dont really understand what the question asked (because dont understand “5marks” calculation could be too tiny compared to question 1 (8 marks per valuation) ~ question APV is fairly past paper format, question 1 is “surprised” which could be cut into 10 marks questions i. Section b because I was expecting Massive NPV calculation and exchange rate and imports and due taxation etc. very nice part 1 asking why L strated as unrelated the decided to unbundling, I almost copied the whole section of the background information. But lost 4 marks for fiscal problem which is also very easy marks. ~ all calculations element in todays paper were confusing.

    March 6, 2021 at 12:25 am #613661
    Stephen
    Participant
    • Topics: 1
    • Replies: 18
    • ☆

    can anyone remember the mark allocation for calculation for Q1 unbundling part as well as theory part?

    I am doing a post audit review on this paper….please let me know if interested to discuss further.
    My email stephenlausw@gmail.com

    March 6, 2021 at 4:37 am #613671
    tusharhurkat
    Member
    • Topics: 0
    • Replies: 1
    • ☆

    But according to me , there was sufficient information provided to calculate 4 month forward and forward and money market hedge give same result ,so netting is sufficient , isn’t ?

    March 6, 2021 at 6:17 am #613677
    arunesh77
    Member
    • Topics: 3
    • Replies: 9
    • ☆

    Why no foreign currency or interest rate hedging
    That was sure shot 25 Marks
    The only upside is It will come next time when I resit

    March 6, 2021 at 1:32 pm #613758
    aythin
    Member
    • Topics: 3
    • Replies: 3
    • ☆

    the keyboard and mouse provided in the centre based exam was horrible. this was also one of the reasons of me not completing the paper on time. should i appky for mitigating circumstances.. will this issue be considered?

    March 7, 2021 at 4:15 pm #613865
    Stephen
    Participant
    • Topics: 1
    • Replies: 18
    • ☆

    @Brobs91
    Can I know how you got negative base case when there’s no outflow in the first place…

    And how did you work out the hedging part for Npv with and without swap? Is it in our past year practice?? Based on past year practice, the closest is Buryecs question where the swap is strictly exchange rate. But this question it’s more on interest rate swap….meaning in part (b) you work out IR swap but in NPV q you convert IR swap into exchange rate????

    March 7, 2021 at 7:57 pm #613877
    Brobs91
    Member
    • Topics: 0
    • Replies: 5
    • ☆

    Question stated in the first section it was considering a 600m investment in Rupees. It gave the after tax inflows in the 3rd section.

    With the swap (150m RR) if I recall reduced the investment so 450m was normal capital and 150m was the swap. The swap was then an inflow on year 4 exchanged at the current spot rate as the q stated to swap it back.

    Yes Buryecs was very similar and a question from June 11

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