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It was ok, but I didn’t have time to complete question 3. Questions 2 and 3 seem not hard
It was easier than I expected (or so do I think)), id be confident i passed if students in my classroom didnt decide to perform calculator solos
The mental agility you need to be able to pass this exam is on another level. I can’t even explain it. Reading, recalling theory, digesting and actively working on the numbers requirements fried my brain cells. Cheers to an expected fail mark so I can try P5.
I’m done with this one.
For the fcf valuation of new company in Q3 what was the discount rate? i used wacc for the company as the discount rate because i panicked with little time left. the valuation i got looked completely wrong but hopefully would not lose too many marks on that if the method used was correct?
i didn’t have enough time for the 10 marks at the end of Q1 either because of time constraints.
Yuwa Co earns considerable profit from other activities to take advantage of tax relief? What does this statement means? Can anyone tell me? Should we carry forward the loss or not?
I thought the exam was ok. Struggled with the valuation of Pa and Pe in the Honou offer in question 1.
Question 2 I thought was ok
Question 3…. not good. Just ran out of time. Went to pieces a bit. Mind went blank with the weighted cost of capital. But think I did ok on the free cash flows valuation. ( although not happy with the discount rate I used … hoping to have gained marks around this )
Hoping I’ve done enough in questions 1 and 2 to have passed this… failed with 46 the last time!Q1 was the hardest… The black sholes model was asked so different.
The NPV was easy
Q2 this was quite easy… Blanked slightly on the swaps but overall good
Q3 this was easy ungearing beta, wacc of numiger and the the ungeared cost of equity poylins (can’t remember the exact name of companies)
Hoping I’ve done enough to pass..it will be a close call
@aadil1234 said:
Yuwa Co earns considerable profit from other activities to take advantage of tax relief? What does this statement means? Can anyone tell me? Should we carry forward the loss or not?Any losses incurred are assumed to be used up in the same period against profit in another part of the business …. so losses should not be carried forward.
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as I remember I took 9%, but I don’t remember whether it was Ke or WACC 🙂
I got 9% for the Wacc of company n and company p was just the cost of equity as it had no debt. I think it was about 13% which sounds about right as you would expect the ke to go up as they nolo ger have tax shield
Can someone just reassure me with the interest rate options…. the future rate was given to us wasn’t it? We didn’t have to calculate it…. all the doubts are starting now
5.81% I think I got for options. Swap was 5.45% I believe. I think the rate that was provided from the futures was the lowest rate.
I got 5.7 and I got 5.45% for swap… Not over confident on either.
Basis was 25 and only 1 of 5 months were remaining
@louiseabigail said:
I got 5.7 and I got 5.45% for swap… Not over confident on either.Basis was 25 and only 1 of 5 months were remaining
Yeah… I didn’t work out he future using the basis. For some reason there was a figure there that I just used ( so I think I’ve lost a couple of marks here)
The options really cost me time as I thought my first answer was wrong using the futures price and started messing etc with contracts etc oh I’m so annoyed
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