- This topic has 136 replies, 57 voices, and was last updated 4 years ago by
.
- Posts
Did you anyone just get an NPV question but without the lease or buy! It was a long question with inflation for prices, VC, FC?
Its alright I used the wrong discount rate but hopefully we’ll get good working marks… i think (hoping the tax claim was where the main marks were)?
Yes i got it but ended up with a positive NPV. Still unsure if i should’ve addded the working capital at the end or not
I did add the Working capital at the end as well but I have a feeling I made a mistake with my working capital calculation
I got the Expected NPV with the variable cost using probabilities for 1st question in section C
The 2nd question was Equity and Debt.
I increase the PBIT by the % in the question.If you use equity the finance cost stays the same as per extract and if you use debt the finance cost increases by the 8% loan notes and then you recalculate the profit based on those adjustments and then recommend which is better.
I then just compared the interest covers rates with the current extract.
Section A and B were quite tricky
Sec B the business valuation question they asked what the minimum price of a share should be so that the 25 shares and the loan note value would be equal could someone tell me the answer and how they got it cause it didn’t have a cost of debt value
also blank co. with receivables mgmt. with factoring. i recomended factoring theory part was good but lengthy. overshoot the timing in sec c and OTQ for FRA and asked to calculate sopt rate after two years (was in unknown territory)
Also I got a sec C question for lease and buy where 4 * 100000 payments were made but the tax saving on that should start from year 1 right. In that question the borrow to buy was cheaper than lease according to my answer hope someone could add into this as well
Yes I had the same and if I’m correct was it the preference shares are you talking about. I was expected to divide I/kd but couldn’t figure out the kd part.
What is did was (which is probably wrong!) I divided the I(1-tax rate) and got 4% and then I divided the market value by the nominal value and got .68 and then divided 4/.68 and miraculously got one of the answers but again it’s probably wrong! Spent too much time trying to figure it out haha
Sec B risk management question got to select the borrow amount and deposit amount in one question and also a forward rate value for a receipt of 300000 MS
I don’t think we are talking about the same question my friend, cause my question didn’t have any options we had to directly put the value which made it harder to even give it a lucky shot?
It was about a convertible loan and what should the share price of the shares be for the decision of conversion not to matter.
Lolz yeah even I spent too much time thinking for that 2 Mark’s question which could’ve spent else where but that’s ACCA hahaha
I got the same…. I didnot practice factoring and lease or buy at all … i thought they would be easy.. it bit me on my back a little with that discount rate… and I had BPP practice questions … didn’t help with section a or b at all… lets hope I have done enough 🙂
Same … didnot practice … this one got me good … although there is actually such question in one of the 2019 exam papers where you have to calculate the discount rate … very similar question … although too late now 🙂 //
I got 6% then i recommended borrowing to buy cos it was cheaper… 8.57% was before tax so i calculated as 8.57%*0.75= 6%..
- The topic ‘ACCA Paper FM September 2020 Exam was.. Instant Poll and comments’ is closed to new replies.