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The other question Mean Co asked for wacc calculation. I think my wacc was 11% but I dont remember exactly. But the theoretical part of this ques where we had to critically discuss regarding capital structure and wacc relationship or something like that, it went bad for me as I didn’t write much. It was worth 10 marks 🙁
@ryanwilkes1985 said:
Mate the Paris co was wrong – it had a mistakeYou need to put in an extenuating circumstances report to acca
Really ? :O Do you know what the mistake was? Was it incomplete ?
We all got a sheet about it
If you didn’t get a sheet – you need to put an extenuating circumstance s report
A number was wrong
I reckon these CBE 3 hours is not long enough, given that navigating using the mouse and computer is frustrating and slow. Felt that the length of time given should not be the same as paper based version.
I did it over 4 years because in the paragraph at the bottom, it says the directors appraise projects over 4 years ?????
For depreciation, it was straight line over 10 years so there would have been no reason to adjust TAD just because you did the appraisal over 4 years. Depreciation would be exactly the same. Can’t depreciate it faster than it’s supposed to be ?
Part A Part B was difficult ? part c NPV was ok and merits of NPV and IRR THEN WACC QUESTIONS and theory? I prefer part C than A and B????
@goodvibes said:
The other question Mean Co asked for wacc calculation. I think my wacc was 11% but I dont remember exactly. But the theoretical part of this ques where we had to critically discuss regarding capital structure and wacc relationship or something like that, it went bad for me as I didn’t write much. It was worth 10 marks 🙁Hello. I have got approximately about the same around 11%
Hope that’s correct.My WACC question had a second part on benefits to company of redemption loan notes and link between marginal cost of capital and WACC
@tyjac said:
I had same as you. A lot of forward contract, foreign exchange. Full of theoretical questions, had no WACC, only appeared once in section A Mcq, remember answer came to 16%.Section c questions was full of theory, had cash flow which totalled 10 marks, which I believe I scored full marks on. I skipped the NPV question, had no time. Instead I focused on theory questions. Had working capital management, cash cycle management, merits between NPV vs IRR for the two directors choices.
I had a damn mcq question on the steps for the bankers bill or whatever it’s called, total guest.
Does anyone know whether this is correct or not, had a mcq on it, I chose it. ‘Translation risk on financial statements cannot be hedged.’
i had the same paper as you
Translation risk can be hedged but it is deemed unnecessaryI also had the NPV 4 vs 10 years. And nominal cost calculation then real cost.
I calculated my NPV workings based on 4 years due to the director comment at the bottom saying that they are appraised over 4 years. I used a depreciation value of 10 years. Not saying whether this is right or wrong, it was a little confusing.
With regards to the wrong question Paris Co, some people in my room were not even aware. We were not told before exam started, or even early on. A lady just randomly slid a peice of paper on our desks part way through the exam which I assumed was scrap and ignored initially. Fortunately I did not have the question containing the error.
The exam seemed pretty easy. Not as easy as PM but I was able to finish.
We had notes on the table that the Paris Co question had an error and to seek help if we had the question but I don’t think anyone had it.
Sections A and B seemed to revolve around very few topics.
it was also pretty tricky at times. Got a basic NPV question and WACC in Section C. Just hope I did enough to pass this time.Guys, I filed a centre complaint as instructed in the mail sent by ACCA for not being informed on the number error in Paris Co question and got a reply that they receive report from supervisor of the test centre after the test, and base on this information to take action on final result.
But if the supervisor never did acknowledge the error( I mean I was never informed or told the supervisor), how could they even report?@avbosip said:
Hello. I have got approximately about the same around 11%
Hope that’s correct.I hope so too. Did you get Paris Co ? How did you tackle the NPV question ? It consumed too much of my time and I still couldn’t figure out what to do with the little information that was provided.
I had this question WACC was 12.7
Cost of equity was 14.7
Cost of convertible loan was 6.8
Cost of bank loan was 6.5 somethingI had these question, I agree to your point . I had read this in kaplan material were it said If machine is not used for entire life still we have to depreciation over its life time.
But in my question NPV was asked for both nominal and real rate I had a huge variance between both methods ?I too had the same question but I did not inflate cash for my real rate wacc , Hope you also dis the same ,
But theory wise we should get same NPV which i did not get it had variance of 100k between both methodsBank loan you could have used same as loan notes ???
I think the WACC could have variances so long as you explained yourself
Hi Anyone got the question relating to conservative and aggressive working capital assessment under section C?
I found the exam wasn’t too bad. Although I’d have loved A WACC question and got a cash budget question instead ? Did anybody else get the cash budget in section C and if so how did you tackle it? Worried i may have lost a lot of marks on it.
@jareerabedin said:
i had the same paper as you
Translation risk can be hedged but it is deemed unnecessaryHow did you lay out your cash budget?
Yes. But I don’t think i laid it out correctly unfortunately. Anyone remember roughly what their closing balance was?
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