How was your AFM exam? Please post your comments below, and vote in the Instant Poll
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AFM*** ACCA Paper AFM September 2019 Exam was.. Instant Poll and comments ***
Yes 100%
Me too! :)
I know but they are testing what you know about the syllabus. Nearly
Most of the syllabus was covered in all 3 questions which was quite nice to be able to use our knowledge. I am sure even if you got the figures wrong, you will be given lots of marks for your knowledge and application skills.
I found the exam ok. I left the hall smiling but you never know :) Good luck
Well done! My way too! I think we will pass this one! Fingers crossed ?
Yes, it was done from scenario for project Alpha, but PV for project Beta was calculated based on all equity Ke. So how we should compare NPV from projects A and B?
Not enough time, It is for 4 hours
Did you receive possitive or negative APV for Alpha project?
So glad everyone else is feeling the same on time constraints. This exam is ridiculous. Although the questions them selves I felt were ok, we just didn’t have enough time to answer them. Maybe it will be possible when we are CBE
@dreid8966 said: Not the questions I expected at all. Thought there would be more on interest/foreign exchange, options, swaps something of that nature. For question one I got the forward rate as a higher return than the money market but only marginally. About 26 million for raised by the money with an additional 24 million required for the finance. Think I got the APV component correct, remember doing a practice question that was very similar. Didn't expect the subject matter for 2 & 3, wasn't all that confident on the main technical component but had a go, think I might have recovered marks on the discursive components. One thing I did wonder about question one, did you do much to the Beta project in the initial NPV? From my reading/recollection the cashflows were already discounted, just needed the initial 50m. taken off? Per recollection I got 5100 npv. With Alpha higher. Did wonder if this was correct at the time as both had a positive NPV, from the sample questions I've done on APV they almost all ended up with a negative NPV, but are accepted due to the loan component I got positive for both too
It's kind of ridiculous, they are testing speed handwriting and speed calculator computation rather than knowledge. Nobody does such kind of tasks in real life with just a calculator within the time given.
Honestly, it is not that hard, but i can't manage to complete it in time. Got blank on third question calculation part due to have one hour left, and still need to write all the writing part. Section 1 took me 2 hour plus.
I get 25.462m hedging amount using forward contract, money market hedge is lesser but marginal. Project Alpha NPV is around 5,562 if i remember correctly. And the duration is 2.6years. Forgot the amount for APV.
The dividend capacity i get for question 2 is 80M.
7y ago#42Why no interest rate n forex question in one question of 25 marks??
Hi guys, wish everyone good luck. Please can I have a summary of the main topics that were examined in September 2019? Thanks
I have the same calculations for Q1 as amurulez but failed q2 with dividend capacity . How it should be calculated?
Do you remember of how many marks was the last part of Q1 on inherent risk.
Forgot to answer on this.
7y ago#46I AGREE, ITS ALL ABOUT GETTING MONEY NOW
@amirulez said: Honestly, it is not that hard, but i can't manage to complete it in time. Got blank on third question calculation part due to have one hour left, and still need to write all the writing part. Section 1 took me 2 hour plus. I get 25.462m hedging amount using forward contract, money market hedge is lesser but marginal. Project Alpha NPV is around 5,562 if i remember correctly. And the duration is 2.6years. Forgot the amount for APV. The dividend capacity i get for question 2 is 80M.Got very similar throughout, remember the money market being marginally worse in my answer. And Alpha's NPV being about what you said. I got 3.02 years for its duration, however, I recommended Beta in the end I don't know about you guys? My logic being that both projects NPV weren't that far off each other with respect for the amount of money invested, but as I got the 3.02-year duration compared to Beta's 2.42 years (?) that Beta was lower risk for a similar return. Can't recall what I got for dividend capacity
got negative for alpha..recommend beta..last question unable to finish..time managment was an issue
Who else considered the fact that the project was to start in 6 months, and we were to present value it today?. that kinda affected my initial outlay
So how will the calculations differ if we were to find the npv of the project starting in 6 months??
In the 1st question it was said tat the project wud start in 6 months time....so will the npv calculations be any different from how it normally is?
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