Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › *** ACCA Paper AFM September 2018 Exam was.. Instant Poll and comments ***
- This topic has 117 replies, 40 voices, and was last updated 6 years ago by vicky1219.
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- September 7, 2018 at 8:01 pm #472191
Overall I thought it was a very unfair and strange exam- surprised that option pricing or apv/capm/Wacc wasn’t tested given that they have been in every paper for years. Questions were so different to past papers.
The three different currencies was confusing and it seems as if ACCA have made it harder with no choice question.
They definitely do not want us to pass.September 7, 2018 at 8:14 pm #472195hope for the best
September 7, 2018 at 8:16 pm #472197exactly same here bro but chill out ! hope for the best ! left 20 numbers ! lets see what happens by the way what is the date of result is it 17 nov ?
September 7, 2018 at 8:27 pm #472203i came out of the exam feeling cheated. I spent so many hours revising and really felt confident that i had a good understanding of the subject. Then opening the paper and reading the questions and i was horrified. Why bother giving us the formula sheet if the questions are nothing to do with all the areas we have been studying and revising for the last 3 months. That truly was an awful paper and for the first time ever i felt like walking out. Are ACCA trying to test our knowledge or play some sort of power games as to how to confuse and throw a few swerve balls at us. I have a good knowledge of the subject but ACCA will never know that because they are not interested.
September 7, 2018 at 8:33 pm #472206yea that year 0 and year end made me little confusing ! i think that year 1 cashflows had to be discounted at 1 as in year 0 . i might be totally wrong!
September 7, 2018 at 8:41 pm #472214i think it was to save time
September 7, 2018 at 8:43 pm #472217I did that as well, and put in the report it was an unusual request, one I hadn’t seen before, explained my interpretation of it (Yo DF1, Y1 DF 1) and told them they could email me if it was different
September 7, 2018 at 8:44 pm #472218I thought it was a better exam where they left out all those formulae you already have on the computers
September 7, 2018 at 8:49 pm #472221Honestly, I felt cheated in this exams. These types of questions were never given before (based the past papers I’ve worked). I had prepared so such in the past month, ensuring I adapt the correct approach for the paper/questions. None came to use with this exam.
Already sat for this paper like 5 times.
I guarantee that I have failed this paper.
Either I would drop now or Else see you in Dec AFM..
September 7, 2018 at 10:22 pm #472239640
September 7, 2018 at 10:29 pm #472240640 contracts sell futures seven month receipt 10080 m JPY which will be invested for 6 months at annual rate 1.2. From JPY EUR and ARD EUR lower rates I was calculating JPY ARD spot and then based on inflation rates the rate in one year time.Then the value needed for invested translated in JPY-from this deducted the 10080 plus the deposit interest and the extra debt required was around 3000 m JPY (don’t remember the exact figure).Sounds familiar for anyone?
September 7, 2018 at 10:31 pm #472241Equity value of Salerno 650m and Chawon 60 m. Combined comaony equity value 746m so the additional value created 36 m. Anyone gor to the same results?
September 7, 2018 at 10:58 pm #472247Pathetic exam
Qs1: currency forwards futures and options
Additional debt required and which strategy gives highest net payment
Other part ! Npv with international investment ! Hell no exchange spot rate given ..I just assumed that airone exchange spot is same as with Euro and continued ..lot of mess in Q’s 1 .got 640 contracts …and gain of like 10061 ..and lots of zeroes ..so I got confused that is my answer going in billions or millions …so messy work ..also qs1 involved multiplying the currency to get exchange answers and I kept dividing ..coz usual practice questions …then cancelled all and did againQs2..ration and trends 20 marks and behavior finance 5 marks
Due to Q’s 1 …I didn’t do qs2 well ..as I thought I could do ratios quick ..but qs1 was out of my imagination!!!!Qs3..equity value of combining companies ..some multiple given ..I multiplied 8 with 6.50 to get selorne equity ….no interest were given ..figures were not as I practiced the whole kit …very few numbers provided with a long scenario…..Q’s 3 also asked about if cash was considered for the bid ..to what amount it is needed ..for some sources of finance ..which one is better as source of finance ( rights issue …long term debt …mezzanine debt …convertible loan) ..
As compared to June attempt this was tough …as there was no choice .the paper I expected would b straight enough to understand but this included no choice plus lot of complexities and the numbers were big ….so big in millions and after multiplying they were overlapping the other years figures ….messs
September 7, 2018 at 11:04 pm #472248Future rate ..
The basis was 0.57 …I got futures as 124.5 something and it was creating lossSeptember 7, 2018 at 11:10 pm #472249That was unexpired basis…total basis is 4
September 7, 2018 at 11:11 pm #472250How many marks I lose if I said buy futures now sell later ????
It was sell futures
The multiplying and dividing confused me
All the time we are always dividing with spot rate and contract size to get no of contracts ….but in here there was no need to divide by spot …the contract and transaction both were in eur!!
And my all calculation turned to loss due to above strategy I was doing
September 8, 2018 at 4:06 am #472260It was really disappointing. For what seems like the first time ever, all that was provided on the formula sheet was TOTALLY useless for this exam.
Completely!!! No CAPM, no WACC., no gearing and regearing, no options.. Nada!! Nothing from those areas…
September 8, 2018 at 7:21 am #472270@mari15 said:
Equity value of Salerno 650m and Chawon 60 m. Combined comaony equity value 746m so the additional value created 36 m. Anyone gor to the same results?Yes that’s what I got, and calculated Chris Chawon to have a 1/6 chare in the new company so his shares were now worth 124m
September 8, 2018 at 7:53 am #472272Hi. Do you remember how you got 640 contracts?
September 8, 2018 at 8:12 am #472275It was 80m, contract size 125k, so 80/0.125 = 640
September 8, 2018 at 8:35 am #472282Arent we suppose to multiply this by 6/3? Six months to receive over 3 months of the contract duration? I got 1280… looks wrong tho.
September 8, 2018 at 9:19 am #472296No, that step is only for interest rate futures
September 8, 2018 at 9:50 am #472299I left Q2 last and run out of time. Such an idiot, I missed out on the easy marks..
I hope I’ve done just enough, I don’t want to sit this horrible paper again!!!September 8, 2018 at 10:12 am #472304Can you remember what the split of marks for Q3 was?
September 8, 2018 at 10:40 am #472307Q1
A) 5 marks investing in fx lands
B) 5 marks adv dis otc vs exchange options
C)
I) hedge & debt required 11 marks
II)NPV FX 9 marks
III) discuss above and something 9 marks
D)7Marks diff types of financeQ2
A)20 marks ratio and performance
B) 5 marks Behavioural financeQ3
A)6 MARKS fcfe of combined
B) share of benefit 6 marks
C) 7 marks synergies and issues
D) 6 marks - AuthorPosts
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