*** ACCA Paper FM June 2019 Exam was.. Instant Poll and comments ***

What part was that in?
What did you write about ROCE?
Also the written parts asking for merits of dvm and capm- did they just want pros rather than cons here?

I had an McQ where you would resell ordinary shares – chose secondary market.
One also asked about who couldn’t trade in money market I think… anyone else get these?

@barbadoshk said:
Let me think about that wacc one! Bad memory !! Did u have to calc it using dvm and then capm ? Or was that another question? My answers to that were very similar around 14%

I didn’t calculate using CAPM or DVM – did the full calc but not sure if that was correct as only 4 marks

I thought the exam was a let down, after all that studying, barely any of the syllabus was examined. I feel like the examiners don’t really like you having all the relevant information, they make it very difficult to pass an exam just by reading the materials provided/distant learning.
Really disappointed after months of solid hard work.

I had the NPV question too and ended up adding the depreciation back in as it’s an irrelevant cost and also adding the r&d back in as that’s a sunk cost? Not sure that was correct though! I got a negative NPV and advised to not invest in the machine.
Also, my study provider only taught us how to deal with straight line and balancing WDA’s..nothing about first year initial 100% allowance and what to do thereafter.

I studied SO much and went through so many questions from the question bank, yet still struggled. I passed all other exams first time so I know what it takes to pass and I have to say, this exam was just pointless to study the whole syllabus for. May as well spent 1 week on just a few areas. Trouble is, you don’t know which little areas will come up!!

Fingers crossed though…you never know 🙂

@snell123 said:
Yes but there was a question before that were you had to work out the required return. It was something like current dividends value was 725m which equates to 14.5 per share with annual growth of 2.7% divided by share price of 65 then add the growth on

Oh yeah the 2.7 rings a bell, think we had to do the DGM and CAPM for that question then got told the cost of equity next question and asked to work out the Wacc.

@katie8223 said:
I thought the exam was a let down, after all that studying, barely any of the syllabus was examined. I feel like the examiners don’t really like you having all the relevant information, they make it very difficult to pass an exam just by reading the materials provided/distant learning.
Really disappointed after months of solid hard work.

I had the NPV question too and ended up adding the depreciation back in as it’s an irrelevant cost and also adding the r&d back in as that’s a sunk cost? Not sure that was correct though! I got a negative NPV and advised to not invest in the machine.
Also, my study provider only taught us how to deal with straight line and balancing WDA’s..nothing about first year initial 100% allowance and what to do thereafter.

I studied SO much and went through so many questions from the question bank, yet still struggled. I passed all other exams first time so I know what it takes to pass and I have to say, this exam was just pointless to study the whole syllabus for. May as well spent 1 week on just a few areas. Trouble is, you don’t know which little areas will come up!!

Fingers crossed though…you never know 🙂

I kind of felt the same way, did the BPP revision kit 3 times! And the past exam papers, but only 50/50 if I passed coz found section A and B harder than I expected and often you just have to get one thing wrong and lose the whole 2 marks. Most annoyingly I somehow had a blank on the price/earnings ratio question, then as soon as the exam was over I realized what I should have done and its not even a hard question, so I think it was partly exam stress getting to me aswell.

@xanpech said:
How did you re-gear the asset beta to their equity beta? I struggled with that…think their debt/equity ratio was around 42 percent of the top of my head? I think I did something like divide it by 0.58 but was almost certain I was doing that wrong but hoping to get marks overall with own figure rule.

Oh I didn’t regear just used 0.784 – I might of lost marks there then

@katie8223 said:
I thought the exam was a let down, after all that studying, barely any of the syllabus was examined. I feel like the examiners don’t really like you having all the relevant information, they make it very difficult to pass an exam just by reading the materials provided/distant learning.
Really disappointed after months of solid hard work.

I had the NPV question too and ended up adding the depreciation back in as it’s an irrelevant cost and also adding the r&d back in as that’s a sunk cost? Not sure that was correct though! I got a negative NPV and advised to not invest in the machine.
Also, my study provider only taught us how to deal with straight line and balancing WDA’s..nothing about first year initial 100% allowance and what to do thereafter.

I studied SO much and went through so many questions from the question bank, yet still struggled. I passed all other exams first time so I know what it takes to pass and I have to say, this exam was just pointless to study the whole syllabus for. May as well spent 1 week on just a few areas. Trouble is, you don’t know which little areas will come up!!

Fingers crossed though…you never know 🙂

I think the 100% allowance in first year just means you just calc whatever the tax rate was of the investment (like 15% of £600k) and use that as a positive cash flow in year one – which made my NPV positive

I assumed this aswell and only adjusted the tax saving from dep’n in full and that related to first year ,then the remaining inflows were R & D’s amortisation which was included I added it back because it’s dep’n and also infact it’s on the sunck cost , then the original depreciation was also added in calculating forcasting profits/losses so I added this back also since depreciation should be added back it’s irrelevant, and that’s it I discounted the Net cash flows at the rate , and got a Positive NPV ,and the number started with 9 something idk how many thousands

For section A ,did anybody get that question which related to indivisble capital rationing where u had to to do trial and error method ,
The most maximum NPV according to the combination of projects under the capital required , I got the answer of 91000

Also – there was a question on capital rationing that was divisible with mutually exclusive projects.

BUT i had an issue and was baffled as one of the projects had a negative NPV so even though they had i think 40K left to invest, i didn’t include the project with the negative npv ???

and what was your cost of debt??

but they gave the mv of equity and debt tho???