FM*** December 2024 ACCA FM exam – Instant Poll and comments ***

A mixed exam. Section C was rather OK I had one on lease vs buy Then the other on finance choice - gearing and interest cover. Section A and B was very difficult in my opinion and had some real tricky questions! How did everyone else get on?

I had one lease vs buy and the other one the purpose and the goal of Islamic finance. Agreed about the section A and B, I found 3/4 question very tricky!

I too think section A and B was much harder than expected and subsequently my time management was affected. I think Section C was much easier compared to section B especially.

I had the same paper too. Do you remember which option was correct in section c? I remember choosing the lease option for second question and the right issue over issue of loan notes for the first question.

I had lease vs buy and gearing/interest cover crq in exam.. section C was okay_ish But section A,B was very difficulty and tricky

I had lease vs buy and gearing/interest cover crq in exam.. section C was okay_ish But section A,B was very difficulty and tricky

I chose the lease option over buying option.. but i forgot to add the residual value which would bring the buying value down and lower than leasing option So i think for me, the correct answer was buying Im gearing, interest cover crq i chose rights issue over loan Notes, debt

Section C was NPV (investment with Fisher calcs, TAD and working capital investment). Second question was WACC/ Islamic finance prohibitions. Section A and B was horrendous! Foreign Currency, Biz vals and working capital.

Does anyone that got the question about capital rationing remember what the question actually said ? It was for 8 Marks. It didn't ask about hard or soft rationing.

Hi Kmgrunsell, what was the question that came after NPV calculcation on section c for you ? Thanks

Hi Kmgrunsell, Im pretty sure we were not required to use to fisher formula as we had to discount the flows using nominal/actual rate, since the cash flow were all inflating at different rates. Also regarding capital rationing, I believe we had to talk about different types of capital rationing i.e Divisible , non-divisible projects

Hi! It was about what company should do and consider when it has capital rationing

What about NPV question in Section C? What weas the answer?

The question was asking which appraisal methods are suitable for capital rationing , in this case i guess you have to describe the DCF AND NPV, and how they relate to divisible and non divisible

it was WACC , redeemable bonds , preference share and ordinary shares , what puzzeled me is that there was no discount for the calculation of IRR did we have to resort to using the IRR formula

Section A and B was typically very challenging , i remember questions of the likes of calculating the current inventory policy , where you had to calculate a buffer , one where you had to analyze the Payback period of different scenario , and the one that talked about the fiscal policy , option 1 of the answers they said increase in public spending , rather it is increase in government spending , more question on asset valuation , risk , and in section B , the working capital question was so challenging , does anyone remember the value of the minority shares , and also payables days which trade payable amount were we using the one on the balance sheet or the closing one .Section C for me was NPV , prohibited acts on Islamic finance , advantages of Lease and Buying , WACC , ordinary shares (CAPM ) , Preference share and redeemable bonds (we were not given a discount factor) and Capital rationing (theory).

True ,