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A very fair paper. My bad. Should have practiced more questions. Didn’t to justice to the exam at all.
Not a bad paper. Would have passed if it was paper exam. Found CBE much more difficult to find way through all the different pages and worksheets.
Just got kicked in the nuts by AFM. Although it wasn’t that difficult but I was just too nervous and lost track of my thoughts and couldn’t finish in time 🙁
Q1: FCF valuation of acquisition (behavioural factors for overvalued high-tech companies, PER of business unit, CAPM -> WACC, strategic aspects, financing factors)
Q2: currency hedges (rationale for policy and for communication of policy, recommend between fwd/futures/contracts, impact of open futures position under different settlement prices)
Q3: investment appraisal (NPV, expected values, usefulness of capital investment monitoring + post-completion audit)
My comments:
This was my 4th time sitting. Thought it was a fair test The requirements were clear and the information not excessive.
Usual grumbles re extreme time pressure. I tend to go over time on the calculations.
Liked the way the requirements followed the same order that information was presented in the case text. Liked the way the information you needed to use from the case text in the calculations wasn’t jumbled.
Approached it Q3, Q2, Q1, allowing 2 mins per mark and starting to write more or less straight away. Works for me.
Did OK on Q1, good on Q3 and badly on Q2. Didn’t practice FX techniques enough. If it had been an equivalent exercise about interest rate risk I would have passed. Hey ho.
Don’t mind sitting it again – getting better at it each time. Bit anxious about the CBE testing however. It sounds, and looks, like the resources they’ve come up with are harder to work with than pen and paper.
I thought I wasted most of my time flipping through execl, the requirements, resizing, moving , rather than solving
Wish it was still paper based.Hi,
I cannot remember the first a. requirement for Q 3?
Can someone support me with this?
Many thanks!I’m crazy… I forgot to convert 18600$ to euro before number contacts calculation in Q2, so i didn’t use additional forward hedge, and took it for option calculation.
How many Mark i’m loosing?What did You do in Q3 with point, that 70% wasn’t approved from regulations, and Gepo propose 3,4 m pay now, or just 1 mln if regulator refused.
Should We calculate anythibg here?
Or just write comment explanation?My paper was paper based in Excel London. Thought it was a fair paper as well. Only part that really threw me off was the 70% success rate of passing the regualtaion in Q 3.
Is there anyway to check or when do acca release the answers?
@isida85 said:
I’m crazy… I forgot to convert 18600$ to euro before number contacts calculation in Q2, so i didn’t use additional forward hedge, and took it for option calculation.
How many Mark i’m loosing?From the answer I got it was fairly close to whole number the number of contracts so I just put not necessary to do an additional forward hedge, I could have gone wrong somewhere though, but would only be 1-2 marks.
@tripleavi said:
My paper was paper based in Excel London. Thought it was a fair paper as well. Only part that really threw me off was the 70% success rate of passing the regualtaion in Q 3.Is there anyway to check or when do acca release the answers?
Yeah I couldn’t get my head around this question either so just left it and did the last question on CIMS which seemed easier as was pushed for time. In the last 2 mins I came back to it and wrote something like the offer of 1 million was a real option to abandon but I didn’t really know…
@ltodorov said:
Does anybody remember how were the marks allocated in Q3?6 for NPV
2 for Estimated NPV
3 marks for alternative investment
6 marks for 70 percent success rate
8 marks for CIMS / Post auditI found it hard, mainly casue the weighted asset beta there’s me off so spent way too much time on that.
In Q1 what did you write about behavioural factors of tech industry valuation? And for reasons which will drive the financing decision and impact in gearing (did you mention pecking order and all?)
Also in Q3 what did you get for the alternative investment?
@xanpech said:
6 for NPV
2 for Estimated NPV
3 marks for alternative investment
6 marks for 70 percent success rate
8 marks for CIMS / Post auditThanks so much!
@isida85 said:
What did You do in Q3 with point, that 70% wasn’t approved from regulations, and Gepo propose 3,4 m pay now, or just 1 mln if regulator refused.
Should We calculate anythibg here?
Or just write comment explanation?I calculated the expected values for the bits with the probabilities (the recession and the chance of being approved by the regulator): 70% x NPV of the project + 30% x 1m. My answer was a bit below the 3.4m for selling now so I said it would be better to sell.
What was in Q2 option i chose 65 call options. And concluded that options had most favorable rate among all.
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