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Shouldnt it Be a call Option?????
It was a receipt – Contract was in R – Fx/Home
so it is a buy option ryt??? we receive the rupees, we sell the rupess and buy the $You are selling contract currency, contract currency is R, therefore put option
Ok i can resit thé exam ! I got that wrong So i missed 50 points…
Its So hard i will probably do another exam instead of afm…Hi Mikey200.
From my experience of doing the CBE for the first time, I thought the excel would be great and let me speed through the calculations. However the CBE practice test on the ACCA website is way faster than the excel spreadsheet in the exams.
I found today’s exam frustrating when trying to use the excel tool. It was extremely slow, the functions weren’t working. For example, I couldn’t copy the results of my 4 year cash flow into a new cell and the numbers showed up as zero. In the end I had to manually enter them but that leaves room for error…..I felt like it made my workings look more messy as I ended up just using my calculator and it was so slow to even type in the cells that I didnt bother as I was under pressure with time.
However based on my location the CBE is more practical rather than an exam center so I would probably choose to do a CBE again but be more prepared for the excel.
I did sent a note to ACCA with my feedback as I feel the tool on their website is way better and the tool on the exam day is more like the excel sheets on your google docs in terms of speed.
Hope this doesn’t deter you too much and is helpful 🙂Q1. There was something to do with “crown jewels” re selling off gardening business to make the company less attractive for takeovers and also some form of “golden parachutes” ie significantly enhancing their remuneration in case of a takeover bid. There were 7 marks for discussing the effectiveness of the 2 methods in avoiding a takeover bid.
Another part, being not part of the report,was to discuss the approach re remuneration and employees treatment, i think.
Q2. I think you missed the part of the question re methods of bypassing the repatriation of foreign dividends as there was a possibility that this could happen if the regime was going to change.
Q3 you missed the part asking “compare and contrast currency and FOREX swap”I was highly disappointed today. They wasted all the hours I’ve put into studying. My exam didn’t launch after going through the check-in process way ahead of time.
Contingency systems on the OnVue platform didn’t help me well. Only to cancel and ask me to complete a form for reschedule. Too bad!!
I did the same mistake but they say you get penalised only once, so marks for calculating the wacc will be awarded even if the bond value is wrong.so around 1 mark here will be lost.
I did the same mistake when calculating the MV in part b, so here another mark is gone!
That’s why after exam it’s very healthy to relax and forget about it before you realise that everything you did is wrong.
They know that the exam is heavy and they will always put new elements to surprise us, just as they did in Q2 re land and buildings tax aspect, i think it was the first time to be tested in AFM paper.
So there is more to come, i just hope this was my last time to take this exam.this is the most technically demanding of the entire syllabus, so let’s be proud, at least we’re trying!I feel the exam was a disaster.
The technical issue that I faced totally obstructed the flow of my answer and as result I lost so much valuable time and also messed up the 50 Mark question.
The paper was not that bad. But however, I feel I could have done much if it wasn’t for the technical issue.
I have sent a complaint to ACCA and I hope they will consider my issue.I personally feel they should have informed about the remote session right after June itself rather than informing 1 month before.
I could be wrong of course but I read the dividends in the Foreign NPV question just as confirmation that all would be remitted to the parent in the same year which those cash flows arose.
And again could be completely wrong, but for the yield to maturity, you calculate the PV of the bonds cashflows based on the spot yield curve and credit spread. Then to an IRR to workout the annualised Kd (YTM)
Largely agree with Danni, the software is diabolical considering its been around a few years now in the foundation level.
Whilst you may think that it saves time with the sums and formulas, which to be fair it does, all that tike saved is lost flicking back and forth through exhibits and stuff. There’s not enough screen space to have all relevant information in front of you.
Really they need two screens. One for the word processor and spreadsheet and the other for exhibits and requirements.
hi everyone, does anybody remember how the cost of capital was calculated in the 3rd question when doing the NPV i just could figure it out and its driving me crazy remembering about it. the question had 4 different investment appraisal techniques to use. Any feedback is much appreciated. Thanks
I had the same questions. If I remember the q gives you the mv of equity and the mv of debt plus the pretax kd so you only needed to find the ke.
Beta asset was also given so can use the asset beta formula to find be. Plug this into Capm and wacc it and gives you a do of 9%. Hope this helps?You are on point mate, you sound like you have passed if you managed to answer the other discursive questions as it wasn’t hard. I totally slipped over the bond to maturity question as the information gathering looked too time consuming. I would have confidently said I probably pass had I not stupidly mismanaged the last hour on the foreign NPV question. The question was actually straight forward but I couldn’t get my head around the choice of words, as it wasn’t too clear to me on certain points like the tax exempt for the land disposal, the €10 sale etc. I have learnt it many months back, but. Just totally forgot about it.
Really kicking myself now, as I could have spent that time cracking on with the bond question and would at least secured marks to boarder line pass the exam, now I’m expecting marks in the region of 45-53 🙁 Same situation as the SBR exam I took yesterday!
Agree 100% with you on the damn screen size and flicking back and forth to refer to the exhibits and word processor. Definitely need 2 screens in order to work efficiently otherwise this is clearly a disadvantage on taking cbe exams compared to paper exams with the same time allocated. So unfair.
Exactly I was suffering the Same screen limited space issue on my laptop but then I decided to to do it on my 27 inch screen. I was totally satisfied as I was able to display word, excel and the question at the same time.
That is so sad my friend.
My AAA exam got freezed in the middle as well.What is a reschedule form?
So that paper was terrible.
For Q1: how are you supposed to calculate the new market value of bonds & yield to maturity?
For Q2: spent too long struggling with the NPV. Didn’t know how to do the contribution part?
For Q3: how were you supposed to do the futures? in short form or long one?
As for yield to maturity, I calculated it exactly in the way you described. But now I think that perhaps we should rather use the formula using mkt value (mkt value = CF year1*(1+r)+CF year2*(1+r)^2 etc…) and calculate r as ytm
The hedging part was a let down, I thought I mastered futures but the question was twisted, provided contract in indian rupees and I’m sure it confused a lot. I think the loss on futures had to be converted in dollar and then multiplied by no of contracts and contract size to get the correct figure. I didn’t convert to dollar and rushed through it. The question resembles a previously examined question namely Washi which came out in sep 18. The futures however were denominated in the local currency which made it simple. Totally disappointed, I revised AFM for months and didn’t expect a question of such sort.
The more I think of the exam yesterday, the more I think I will be resitting in December.. the NPV q in Q2 completley threw me and I wasnt able to answer the discussion element due to time.
FX Q – I think I did ok on part a but again the FOREX/currency swap question was left unanswered as I thought these were the same.
Q1 I thought I did ok but the more I look back I think I made a mess of the beta element
I got 43 and 44 in my last two attempts of AFM, praying that I get the 50 this timeI dont like the CBE platform, many silly little things are taking too much time in an already time pressured exam even with plenty of practice
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