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Mine set was bit tricky where I got risk mgmt, reconstruction, investment appraisal. What was a other set??
Mine was equity evaluation of unbundled subsidiary (50 mark), currency hedging and investment appraisal.
Mine was very tricky, first question on recostructuring, second on hedging and last one APV but run out of time for the last question. Q2 and Q3 were straightforward but had limited time. Q1 was tricky and is 50 marks so not sure I pass. It was a retake last AFM exam in sept was defo easier
Guys does anyone know if the morning session is better than the afternoon session? I would have preferred app question
Q1 market value of equity of unbundled subsidiary using following methods
net asset method
pe ratio method
FCFF
dividend growth modelQ2 HEDGING
Forward and future contracts
market to market future
marginal callQ3 investment appraisal
NPV
APV
IRR
MIRR
duration
VARSo from memory the Q1 requirement calculate the new statement of financial position plus new share price after restructuring then write a report can’t remember much about report requirement I think impact on bond holders as well as assumption explaination for shareprice calculation. Q2 requirement was hedging one was a loan of 24m future and the other was a deposit of 16m with option then commenting on 3 queries made by manager A B and C on hedging. Q3 was APV with 2 different options
My set was
1. Selling the bus service
2. future and option hedge
3. APV
I could not finish the last question for time.So I’m now getting the familiar post-exam doubt about everything I wrote. I covered everything, but went totally blank for some requirements.
Q1 Unbundled mining company
Q2 currency hedge
Q3 Investment appraisal techniquesin second question on APV refurbishment programme ,i got negative APV although gone through all steps got the issue costs of rights issue 3.5% and the Loan 0.5% and got gross then annual interest payments tp get tax saved on interest etc….add the already given base case NPV negative add it to APV I GOT negative !
any one could tell us what you got?
i suggest in the instant polls on opentuition ,the vote to be made once per account to show more accurate analysis of exam experience
I got :
Q1) Restructing (Factors considering gearing level & finance,Revised BS/share valuation/impacts on stakeholders/ethical consideration)
Q2) International investment appaisal (NPV & Other forms of remittances following restriction of dividend)
Q3) Forex hedging (FR,futures, mark to markets-purpose & implications of not topping up margin, role of treasury)
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