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Studied every day for 2 months. Luckily no option pricing or APV this time. Attempted 96 marks, lets see. Worst question for me was on the equity value generated for each shareholder in q3.
Thanks John & Opentuition team for the materials and lectures.
Remember you can say thanks also by donating to opentuition, if the materials/lectures were useful.Exam was horrendous in my opinion! Completely lost track of time on question 1 and spent 2 hours on it then struggled with questions 2 & 3. ACCA really isn’t helping it’s students by forcing them to take paper based exams especially for a paper like AFM where you need to lay out lengthy calculations and have to scribble your work out all the time to correct mistakes and makes answer look poor! Plus on every paper exam my tennis elbow flares up after about 15-20 minutes of writing! Putting question 1 in Japanese Yen when dealing with huge numbers and it a time controlled exam is just completely unnecessary and it makes the question more difficult than it needs to be! I guess that my score for this exam is probably around 40, either way I’m 99% certain I’ve failed the exam which is really disappointing ?
Question 1 was a complete disaster for me I cant even remember the other two because of it at one point during the npv computation I forgot which currency I was working with it completely confused me am glad I did it last. I am definatly not getting those professional marks.
Came into exam and did question 2 3 right away, timed myself well for these 2… But question 1 was unexpectedly lengthy and I felt lucky that I did part a b d first on time. Did not have time to write the whole report for part c but finger cross I can get a pass =.=
Thanks John for all the support with my questions in the forums. Could not sit this exam without your help.
Was it really a strange paper compared to past exam papers or me not being well prepared and a lack of practice.
I did look at currency risk mgt questions but none of those I worked was that lengthy! 2 bloody hours and 25 minutes and only wrote whatever I could for question 2 a… I was tired already after question 1… felt like it was never going to finish that damn question! Anyway, might just be a lack of practice… if I do get a pass good, if not… Dec exam.Q1
I got Futures giving me the highest net Receipt.
NPV was such a head F**k, but I think I had logic to what I was doing, just don’t have that closure as we have never seen a question like it. had to translate the figures from ARD to € to then get them to YEN. took a few reads, serious head melter.Q2
Ratios & Trends for 20MARKS?? madness, straight out of P7 Q1 Analytical procedures type question, think I performed ok, the owner was window dressing as gearing was increasing along with Interest cover reducing , be difficult to continue Constant payout ratio DivQ3
FCFE for combined entity, one was FCFE with growth and the other was using a Multiple.
a bit of guess work, but couldn’t ram home the final part.all in all a very difficult unusual paper
0.57 that’s right only I messed up the formula and had -0.57 . Did it correctly (i hope?) but then scratched it and added a damn minus in front of it…
What was the npv if anyone remembers? I had (JPY546m) … I do not know what exchange rate I had.. can’t remember it…
And currency option! Was there even an over or under hedged amount?! Jeez… that threw me off and I started questioning all my calculations I had done so far!Vaguely remember lecturer saying that you still get the marks for the basis even if its the wrong direction
I got a perfect hedge on the option, which made me think I did something wrong?
Oh well… let’s hope so… but the lock in rate differs then right?
Anyway, what’s done is done but what a draining paper. They removed the choice and made it lengthier… I wonder what’s the sense..
Only after returning the paper I realised perhaps that’s why there’s the additional debt finance.. but still… I don’t think I ever worked a question with no under/over hedging?
For question 1 I can remember putting that futures was the best approach and to sell 640 contracts and then close out the position by buying 640 contracts i think i had the gain at something like 10,051.36 million yen then after investing in treasury bills for 6 months came to 6 million yen. For the NPV part did everyone calculate working capital requirement? To get the ARD to JPY rate i took the mid point of the spread for ARD to EUR to JPY and x by (1 + hc/1 + hb) for the future years. For the additional sales at 25% contribution i just included this in the NPV after converting ARD to JPY then applied 30% tax. For the lost sales piece (110m JPY x inflation) did everyone put a tax saving on this?
Ye that 10,051.36M sounds familiar.
the lost sales I netted of against the additional sales and then took tax off 30% the balance.
Q1(C) was very bad for me. Had to leave it in the interest of time. I did Q2 and Q3 well enough, I hope. Just hope it’s enough to pass. Estimating I completed around 70%. Last paper, 3rd attempt.
I didn’t do the midpoint, instead I seen we had a payment in Year 0 so used the spot rate applicable to a payment, then when predicting Yr1 to 4 incomes I used the (spot applicable to Reciept x 1.Inflation/1.Inflation)
@sawalkhan11 said:
Can any one remember question 2 part bI think it was behavioral finance.
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