Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › *** December 2021 ACCA AFM exam – Instant Poll and comments ***
- This topic has 57 replies, 26 voices, and was last updated 1 year ago by Marron26.
- December 10, 2021 at 9:30 am #643112opentuition_teamKeymaster
December 10, 2021 at 3:58 pm #643731NarishaMember
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Not a bad paper. Ran out of timeDecember 10, 2021 at 4:14 pm #643735
Does somebody remember any of your answers to crosscheck?
Don’t know if it’s a good idea as nothing can be done now but still…December 10, 2021 at 4:42 pm #643741suneerMember
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Reasons for unsuccessful acquisition and methods for resolving this (in given case)
-Estimation of value per share of target company before acquisition
– Estimation of number of shares to issued against share for share purchase
-Percentage gain for shareholders of each entity
-Likely reactions of shareholders of each entity
-If purchase is made through cash then dividends will be reduced from 50% to 10% how shareholders of acquirer are likely to react to this.
Q2 -Benefits of centralised treasury department
Interest rate derivatives, FRA, futures, options, A term *Smoothing* was asked for three marks.
-NPV calculation with an option to delay
BSOP input variables
-use of above information
-Why NPV and BSPOP value are different, advise financial officer
13 pm – 16 pm
Estimate gain to shareholders through cash vs share for share
Method to value individual and combined- FCF
Impact of each offer on financial performance and likely reaction of shares
Advantage of APV
Factors determining credit rating
Adv of centralised treasury
Interest rate risk hedge through FRA futures options
Interest rate SmoothingDecember 10, 2021 at 4:59 pm #643748
Too close to call. It was mostly direct questions but the first aquisition question was information overload. Could have scored more if I hadn’t kept it for last. The APV and hedging questions were direct but it all hinges on my calculations being error free.
I feel like I’m going to get somewhere between 45 and 55.December 10, 2021 at 5:01 pm #643749
I had the same questions. Did you get a negative NPV and APV?December 10, 2021 at 5:03 pm #643750
had the same questions. Did you get a negative NPV and APV?December 10, 2021 at 5:12 pm #643752
Negative NPV of about 3m, positive APV of about 12m is what I gotDecember 10, 2021 at 5:14 pm #643754
Q1 M&A as described above in the thread
Q2 Interest Hedge – FRA, Collars, Futures, smoothing
how do you thiink how many marks can be lost if I put Initial investment in NPV calc to Y1 instead of Y0?December 10, 2021 at 5:17 pm #643755
I was expecting a positive APV so thougg I had done something wrong. I discounted the cash flows at 12% and finance costs at 8%.December 10, 2021 at 5:29 pm #643756
For Q2 which hedging did you find give the highest rate?December 10, 2021 at 5:30 pm #643757
I got negative APV. Please tell me you got the same.December 10, 2021 at 5:31 pm #643758
Negative NPV about 13m , negative APV about 2m I think. Did you?December 10, 2021 at 5:33 pm #643759
Forward rate was lowest (good) , options was highest (bad)December 10, 2021 at 5:33 pm #643760
GRA 6.3, futures 6.31 options 6.6. You?December 10, 2021 at 5:34 pm #643761
I also discounted the cash flows at 12% but discounted the APV stuff at 3.2%,did you tax your cash flows?December 10, 2021 at 5:34 pm #643762
But I recommend options as media reported probable reducing ratesDecember 10, 2021 at 5:35 pm #643764
I got the sameDecember 10, 2021 at 5:35 pm #643765
I couldn’t decide between 8% and base rate, but I think both are acceptable. Yes, taxed tax profits abs calculated tax shieldsDecember 10, 2021 at 5:40 pm #643766
Yeah both should be acceptable I wish I’d stated that on my paper haha. And I remember on the APV question that the cash flows were already poat tax but who knows anymoreDecember 10, 2021 at 5:45 pm #643768
JakeDoughty wrote:Negative NPV about 13m , negative APV about 2m I think. Did you?
Somewhere in the vicinity I think.
JakeDoughty wrote:GRA 6.3, futures 6.31 options 6.6. You?
FRA fixes the rate at 5 point something right? I hadn’t revised this part well enough.
Futures and options effective interest rate were mightily close, with options slightly worse. I’m probably wrong.December 10, 2021 at 6:11 pm #643778avnish92Member
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For the interest rates question did we have to exercise the put option? I found that there was a gain on the FRA, futures and options. Not sure if that’s correct though?December 10, 2021 at 6:12 pm #643779
Who got Interest Rate Hedge for Receipt?
Do you remember your answers? Collars/Futures/FRADecember 10, 2021 at 6:13 pm #643780LeahMember
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What did you get when calculating the Estimate gain to shareholders through cash vs share for share?December 10, 2021 at 6:18 pm #643782
I had collar. Could not remember exactly but futures>FRA>collar. Futures and FRA is around 4.1-4.2 and collar around 3.7% Did you get the same?December 10, 2021 at 6:25 pm #643783
How did you guys calculate share value of target co.? Is the additional value 1.25*16???December 10, 2021 at 6:54 pm #643788OlgaMember
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I’ve got the same figures)December 10, 2021 at 7:23 pm #643793sabeenali01Member
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How was the additional value calculated for the company in the first question??December 10, 2021 at 7:35 pm #643796tomjan1990Member
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The paper was not bad and was a fair paper in term of covering the course but there were issues in my test.
Like my test was not loading initially and invigilator asked to restart my PC, then when I relogged and signed in from the start to the end I had issues with the font.
However, after PC restart and relaunch of exam even they relaunched my test because of font but did not work.
Those PDFs or extracts of PDF for the question part not the requirement part was not readable. I have alarmed the invigilator couple of times but did not work later on, even when I was sending a message to them was not getting delivered or they were getting back to me or getting back in about a hour. Like for one of my messages in first hour they got back almost at the end of the test.
During the exam font issue made me to copy question data to word processor and read it there however the challenge was that, pasting the data to word processor was not in the same question format and extracting the data and concluding question details was difficult and time consuming. It impacted my performance definitely for numerical part and pressurized my paper attempt, running here and there, attempting this and that to score some mark but not being able to attempt all of the paper. I have struggled with time for my question 3 which was numerical question for the most part of it and ran out of time.
If a center-based exam was offered I would not have gone for online test because still it’s not offered in a quality, it should be. ACCA is also not considering the challenges and difficulties of the mode of offering and the technology issues the students are facing.
However, my test was ended at the end, and I have exited but was not able to send a message to the invigilator to report the issues to ACCA to compensate or if I could reschedule it my paper.
Therefore, it was not a favorable setting even attempting more 75% of the paper with all those challenges but my paper may have quality issues. Fingers crossed for a pass, but ACCA need to consider things like this which are beyond students’ control.
Best of luck to everyone setting Dec 2021 setting, hopefully this setting will add to your new year excitements. By the it was my last paper and if I pass it will definitely add excitements.December 10, 2021 at 8:00 pm #643799unagMember
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yes, mine was negative APV40m+
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