*** F9 December 2012 Exam *** Instant Poll and comments***

@d019452 said:
Was the MV of bonds £114

Q4 Mv of bonds, I got 111.2 (

@d019452 said:
Was the MV of bonds £114

what q was that?

its was very easy paper..
NPV +250,000
ARR 28%
WACC 9.3%
other all calculations was very easy and theoretical portion was also bit easy…

Company valuations in q4 I got i 160k, ii approx 90k, iii approx 161k iiii approx 233k. From what I recall there were 2 questions that had a written on interest rates and what could happen, which I thought was very strange?

@d019452 said:
I showed the fixed inv costs as a fixed cost in years 1-4 and I inflated them By 2% per year, I have a feeling it should be more complicated than that cause the question was worth 12 marks.

all of included fixed cost to find taxable profit, i also did same. but only now my brain worked , it is wrong. that fixed cost were fixed investment costs. when i calculated for ARR , i took it.
qn clearly says that fixed cost for roads, utilities, which is commonly used in the site.

Hi people.

I thought I had prepared well for this exam but I cant help but think Ive made a total disaster on it!

Q1 – My best question. NPV – I know Ive made a silly mistake – I think Ive discounted at 9% but Im pretty confident with the rest of my calculations. I think my NPV was about 540k positive?

Q2. – I think I made a decent enough effort and my savings were I think 11,700?? I think I did pretty ok theory too.

Q3 – Disaster! – I didnt complete the first part of the question – my mind just went blank 🙁 Hoping to pull a few marks back on the theory.

Q4 – I thought was very hard – some parts I think I did ok, others ???!! – Again hoping I pull marks back on the theory.

Overall – exam was a lot harder than I expected. This was my first attempt at F9. Speaking to people before and after exam I get the general feeling that F9 is a popular resit!!

I did my best – heres hoping for 50 marks! – If not – June 13 here I come!!

Now for a break….

Merry Christmas everyone!

anyone remember net benefit if cash discounting is chosen??
i think i got around 14k net benefit.

can believe i calculated average capital by dividing by 4…i can c y my arr was wrong

the disc factor in question 1 ?? 12percent was the nominal money rate i think , if i am not mistaken .. i am confused , i did theory ok but calculation were easy buh couldnt calculate anything 🙁 …..

@liverbnz said:
Anyone remember if the fixed costs in q1 were already incurred?

I think they should be included . I got an NPV of $275

Q1 Fixed costs were to be included as they were an annual fixed cost for roads and maintenance and this is to increase by inflation every year by 2%
NPV – I got was 276 + Disc rate used was 12% money/Nominal rate as inflation was involved in the calculation
ARR – 28% using 12% and 31% using 9%
Q1 C – I wrote about Sensitivity analysis and probability analysis

Q2 – A Reject proposal as the new Receivables policy was more than current policy as the discount of 1% costed 75K

B – I recommended accepting bulk discount as it was cheaper than the current order cost.

C – miller orr – about cash injections etc..

D – Investment in Receivables factors – Risk, Current working capital policy, Current Mkt avg terms, interest rates, liquidity requirements

3 a I did not include the OD, cant remember what wacc i got. I think it was about 9%, i sued the capm cost of equity for both ordinary shares and preference shares, cost of debt via IRR of convertible debt – I did take the reserves of 15m off the cost of equity to get the mv of ordiany shares.

C – Convertible more favorable than bank loan due to no lump payment at the end, cheaper, although you do loose equity but director controls the dividend payment. whilst Bank loan consist of regular monthly payments of capital & interest that are tax deductible but could cause issues on the cash flow of the business

Q4 Just answered the calculations!

Overall I felt the paper was ok, but guys do remember you do get follow through marks on questions as long the marker can see you have used the theory.

Good luck

Setting up a Trade Receivables policy OMG I wrote so much on this from credit control to vetting new customers references using agencys experien to outsourcing with INvoice discounting and Factoring companies from internal methods of debt collection to using outside legal such as solicitors to CCJ’s god my hand was hurting. so trying not to overrun on time. Does anyone else get carried away with time when you think you know an answer so you just write and write and then realise your 15 minutes short at the end? stupid boy……