• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
OpenTuition | ACCA | CIMA

OpenTuition | ACCA | CIMA

Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Forums
  • Search
  • Register
  • Login
  • Latest
  • ACCA
  • Ask ACCA Tutor
  • OBU
  • CIMA
  • Ask CIMA Tutor
  • FIA
  • Buy/Sell
  • Qualified
  • Forum Rules

NEW! ACCA March 2021 pass rates >>

ACCA News: June 2021 Remote session CBEs – booking window opens on 19 April

ACCA cancels centre-based exams in some locations and offers remote exams as an alternative. Read more >>

ACCA Paper FM exam was – March 2021 Exam – Instant Poll and comments

Forums › ACCA Forums › ACCA FM Financial Management Forums › ACCA Paper FM exam was – March 2021 Exam – Instant Poll and comments

  • This topic has 63 replies, 27 voices, and was last updated 2 weeks ago by ankithmathew.
Viewing 30 posts - 1 through 30 (of 64 total)
1 2 3 →
  • Author
    Posts
  • March 5, 2021 at 9:56 am #613480
    opentuition_team
    Keymaster
    • Topics: 971
    • Replies: 1327
    • ☆☆☆☆☆

    How was your ACCA Paper FM March 2021 Exam exam?

    Vote in the Instant Poll


    Please post your comments below

    March 5, 2021 at 4:48 pm #613555
    Larisa12
    • Topics: 1
    • Replies: 5
    • ☆
    March 5, 2021 at 5:02 pm #613558
    Afmq
    • Topics: 3
    • Replies: 6
    • ☆

    Question 1 was on what topic ?

    March 5, 2021 at 5:04 pm #613559
    nicko09
    • Topics: 1
    • Replies: 5
    • ☆

    Section b was my worst section.

    Did anybody get the section c 5 mark additional working capital question (1,000,000 extra)? I wasn’t sure whether to discount as it did not mention.

    March 5, 2021 at 5:12 pm #613563
    grahamegan
    • Topics: 20
    • Replies: 60
    • ☆☆

    I got that 5 marker on working capital nicko09. I discounted it as it asked for the present value but not sure if that’s correct. Also thought there would have to be a little bit more in it for 5 marks. Was quite a lot for 5 marks. I probably messed it up though ?

    March 5, 2021 at 5:14 pm #613564
    hiphop10
    • Topics: 0
    • Replies: 3
    • ☆

    I discounted for 3 years then had a positive number in yr 4 so it came to zero i.e paying the money back

    March 5, 2021 at 5:15 pm #613565
    nicko09
    • Topics: 1
    • Replies: 5
    • ☆

    I must of missed the PV requirement in the question, thanks for confirming.

    March 5, 2021 at 5:19 pm #613566
    nicko09
    • Topics: 1
    • Replies: 5
    • ☆

    Investment appraisal section c question – was it correct to use the WACC at 13% to discount?

    March 5, 2021 at 5:21 pm #613567
    grahamegan
    • Topics: 20
    • Replies: 60
    • ☆☆

    Yeah because there was specific inflation rates for each project variable. You could have used the real rate with the Fischer Equation but if they give nominal rate it’s easier to use WACC.

    I inflated for 3 years and recovered the remaining in year 4 with a nil balance at the end of year 4 and then discounted to PV but again could be wrong, only thing I could think of at the time!

    March 5, 2021 at 5:22 pm #613568
    Larisa12
    • Topics: 1
    • Replies: 5
    • ☆

    I used 13% wacc but still unsure. We could have used loan interest rate as the project was solely financed with that?? Doubting…

    March 5, 2021 at 5:24 pm #613569
    Larisa12
    • Topics: 1
    • Replies: 5
    • ☆

    My worst part was section C 10 points on working capital. What was that? What did you advise on the strategy? Aggressive or conservative and why?

    March 5, 2021 at 5:25 pm #613570
    nicko09
    • Topics: 1
    • Replies: 5
    • ☆

    It’s just that because it said WACC 13 percent so when the WACC was calculated the 6% would have been factored in. That was my conclusion anyway

    March 5, 2021 at 5:25 pm #613571
    hiphop10
    • Topics: 0
    • Replies: 3
    • ☆

    I also used 13% i think the nominal is always preferable over the real or thats what i had in my notes lol

    March 5, 2021 at 5:27 pm #613572
    hhw93
    • Topics: 0
    • Replies: 7
    • ☆

    Really disappointed to not get a proper investment appraisal in section C. Instead got a WACC question which was pretty good and equivalent annual cost of two machines, which was ok just not what I was hoping for.

    Found section A and B quite tough. Not sure how I’ve done, it’s going to be close I reckon!

    March 5, 2021 at 5:28 pm #613574
    grahamegan
    • Topics: 20
    • Replies: 60
    • ☆☆

    Exactly hiphop! I remember I specifically asked John Moffett this question and he said if they give you nominal WACC use it especially when they give specific inflation rates. The other way is long winded, same answer but more calculations.

    That 10 maker on WC on aggressive or conservative was a disaster for me. I just didn’t know where to start.

    March 5, 2021 at 5:33 pm #613576
    Larisa12
    • Topics: 1
    • Replies: 5
    • ☆

    And what was that on relative risk in section C? Have not seen in practice kit or study material…

    March 5, 2021 at 5:33 pm #613577
    AhsanKhan1740
    • Topics: 0
    • Replies: 1
    • ☆

    Unfortunately I was stuck in Conservative and Aggressive Approach. But over all FM exam was so good.

    March 5, 2021 at 5:38 pm #613578
    grahamegan
    • Topics: 20
    • Replies: 60
    • ☆☆

    Do you mean the risks and costs of short and long term finance? That threw me off a bit too but I said short term debt is usually cheaper than long term, it’s more riskier for example an overdraft is repayable on demand etc

    Then for long term I split it between equity and debt finance and just talked about the pros and cons of both, equity is higher cost due to return required from shareholders due to being last on liquidation and debt is cheaper due to tax shield but also lower distributable profits.

    Honestly that could be all wrong hahaha

    March 5, 2021 at 5:46 pm #613582
    hiphop10
    • Topics: 0
    • Replies: 3
    • ☆

    Same here, absolutely terrible on the working capital question

    March 5, 2021 at 6:06 pm #613590
    peakky
    • Topics: 0
    • Replies: 1
    • ☆

    hhw93 wrote:Really disappointed to not get a proper investment appraisal in section C. Instead got a WACC question which was pretty good and equivalent annual cost of two machines, which was ok just not what I was hoping for.

    That’s the paper I got too. Not sure how I did to be honest.

    March 5, 2021 at 6:10 pm #613591
    mobrien
    • Topics: 1
    • Replies: 5
    • ☆

    My section C was WACC with capital structure and EAC with why discounted investment appraisal is better. Anyone else? Wasn’t sure about my answers for these. And was disappointed to not get a normal NPV

    March 5, 2021 at 6:15 pm #613592
    Rishi11
    • Topics: 0
    • Replies: 2
    • ☆

    @mobrien I got this paper too! How did you find it? Do you remember the section B Questions? I found them difficult

    March 5, 2021 at 6:18 pm #613593
    Larisa12
    • Topics: 1
    • Replies: 5
    • ☆

    Net Cost of finance in FRA question of part B was tough, i just had to guess…

    March 5, 2021 at 6:56 pm #613607
    mobrien
    • Topics: 1
    • Replies: 5
    • ☆

    Rishi11 wrote: @mobrien I got this paper too! How did you find it? Do you remember the section B Questions? I found them difficult

    I had an interest/fx rate risk, one about business valuations and one about maybe receivables days.
    If anyone did the business valuation one where it asked for share price based on the yield being 6%, what did you get? Wasn’t sure about my calcs

    March 5, 2021 at 7:02 pm #613611
    hopeful
    • Topics: 0
    • Replies: 17
    • ☆

    I got these Section B questions too.

    If possible, please could you let me know what you answered for the Forex/Interest Risk questions? I had to guess on most of those, as I hadn’t done enough revision and found the question wording very confusing… I’m hoping one of my guesses were correct!

    March 5, 2021 at 7:02 pm #613612
    Nikko
    • Topics: 4
    • Replies: 21
    • ☆

    For people who did the Section C EAC question; which replacement interval was better?

    3 or 4 years?

    And the other WACC question, what was the WACC you got?

    I think I got like 6.8% or sth but not sure how right that is lol.

    March 5, 2021 at 7:03 pm #613613
    hopeful
    • Topics: 0
    • Replies: 17
    • ☆

    Mee too

    Larisa12 wrote:Net Cost of finance in FRA question of part B was tough, i just had to guess…

    I had to guess on this too! I found the question wording really confusing.. so many different interest rates..

    March 5, 2021 at 7:05 pm #613614
    hopeful
    • Topics: 0
    • Replies: 17
    • ☆

    Nikko wrote:For people who did the Section C EAC question; which replacement interval was better?

    I calculated that the 4 year replacement cycle was better, as it had a lower cost by about $8.5K. Not sure if I was right though..

    Also, did you calculate the Initial Investment in Year 0 or Year 1? I thought I should put it in year 1, as the machinery wasn’t paid for until a year after delivery…

    March 5, 2021 at 7:08 pm #613615
    Nikko
    • Topics: 4
    • Replies: 21
    • ☆

    Great, I also wrote year 4 is better. 🙂

    The initial investment said it was paid after the first year right, so I wrote the purchase in year 1 as well.

    But I started calculating the resale value from year 0, if that makes sense. Honestly I’m not sure how right or wrong that will be but fingers crossed haha

    March 5, 2021 at 7:11 pm #613616
    Nikko
    • Topics: 4
    • Replies: 21
    • ☆

    In the WACC question, there was a 9 marker which asked whether WACC would increase or decrease after the investors converted the loan notes into shares.

    Anyone else got that? And what did you write?

  • Author
    Posts
Viewing 30 posts - 1 through 30 (of 64 total)
1 2 3 →
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

March 2021 ACCA Exam Results

Post your comments / Instant Poll

BT CBE exam | MA CBE exam | FA CBE exam | LW CBE exam

ACCA PM March 2021 Exam Results

ACCA TX March 2021 Exam Results

ACCA AA March 2021 Exam Results

ACCA FR March 2021 Exam Results

ACCA FM March 2021 Exam Results

ACCA SBL March 2021 Exam Results

ACCA SBR March 2021 Exam Results

ACCA AAA March 2021 Exam Results

ACCA AFM March 2021 Exam Results

ACCA APM March 2021 Exam Results

ACCA ATX March 2021 Exam Results

Sign up with YouTube premium to watch our lectures Ad-free and download them to watch offline.

Donate

If you have benefited from our materials please donate

Donate now

You can also "donate your time" and help out other students on the Students Forums

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on Semi-Variable Costs (part 1) High Low method – ACCA Management Accounting (MA)
  • John Moffat on Semi-Variable Costs (part 2) Regression analysis – ACCA Management Accounting (MA)
  • tushargujral on Semi-Variable Costs (part 1) High Low method – ACCA Management Accounting (MA)
  • hinaw on Acceptance, Consideration – ACCA Corporate and Business Law (LW) (ENG)
  • debbie on Finance – ACCA Strategic Business Leader (SBL)

Copyright © 2021 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy