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@marccbrill said:
In q1 I used the ral rate hope this was correct 275K seems popular so that gives me confidence. I think on revision CD it said if many inflation rates then use real rates there were. 4.5% on Variable costs 3% on Sale costs and 2% on Fixed costs (although not really fixed costs (Crafty BugXers) they were wholly applicable to project.we use nominal rate of return with more than one inflation rates
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@wingwing said:
Pls tell me how to calculate the ARR.
Pls do the calculation1 by 1, i really dont understand how to get 28%1) you should add all before tax CF for each period and deduct depreciation (CAPEX – scrap value -we didn’t have any RV so whole amount had to be sustracted) and divide by number of periods
(CF1+CF2+CF3+CF4- 4000)/4 = X
than average investment (4000+RV)/2= 2000
ARR= X/2000 = 28%
@marccbrill said:
In q1 I used the ral rate hope this was correct 275K seems popular so that gives me confidence. I think on revision CD it said if many inflation rates then use real rates there were. 4.5% on Variable costs 3% on Sale costs and 2% on Fixed costs (although not really fixed costs (Crafty BugXers) they were wholly applicable to project.i felt same, they were not real fixed costs. it was not maintanence costs either.
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Hey no one need to be worried about WACC question.
I saw some question like this in June 2010, named YGV. In answer examiner gave a note as i written below:
WACC calculations that include the overdraft are also acceptable.q.no.2a, i did wrong, i found early discount should be accepted , i got where i made mistake. i think, right decision is to reject the proposal.
i found cost of discount on receivables but i should find on sales.
50% of sales * discount rate.
i calculated 50% of receivables * discount rate.oops.
i thought the exam was fair…
Q1 – I included fixed costs, and inflated the cashflows and used the nominal rate.. not sure it that was right? I got +255 i think
Q2 – 60 days and 40 days after policy change – i found a benefit…
Q3 – I got WACC as 9.34% ish – included overdraft
Q4 – this lost me! I made up all of the valuations!! Wish I has studied this bit more!
Hoping I’ve done enough to pass!
q.no1.
those who got NPV around 255k, and ARR 28% , you r going to loss 8 marks.
dont worry, i also going to lose same marks.
it was trikest part, fixed cost is not real fixed cost. it was investment cost they will spend every 4 year at fixed amount. examiner put a trap. all of us fell.I always prepared for this exam. This have enslaved me as I am not able to cope with the time pressure in the exam. If you are prepared and can work very quickly; attempting ALL questions, then you have nothing to worry-about. These candidates will get a pass. I just hope JEHOVAH God grant his disciples favour; we need favour!!!!!
Let me share; I’ve been doing this paper from it was 2.4 – started 2004 and I think I only sit-out 2 exam, I just can’t pass. Grades are high and Mid 40’s. Victory must be ours. Jehovah please let the markers have mercy on us, we need a pass from you almighty GOD!!!! Thank father!!!!- Topics: 0
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I did;t include fix cost bcuz it was a sunk cost or it wasnt an “incremntal” fixed cost..idk it was very tricky
Q 2 i aced it, part @ the discount cost was more than the saving and b)15000 order level was monthly had to multiply by 12 mths for annual amt
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exam pressure is a hell of a thing tmrw i’m gonna sit n re do it i’m sure i’m gonna make more sense of it as i’m not n that awful exam room
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@ aataroo i got same answers like you
NPV-275,000
fixed cost should be included bcoz it was specifically for drainage and utilities expense if houses would not built cost would not be incurred.ARR-28 or 29% ( rounding diff)
WACC.9.34%
Market value bonds.111.12
Revised recievable days-41 and saving an overdraft intrest would be net of against cost of discount to identify net benefit.
There was certainly a lot to do!! I think in terms of difficulty it was not as challenging as some of the mock/past papers I looked at. Certainly after 15 minutes (which felt like 5!) of reading time I was confident I could have a good stab.
Was really disciplined about moving on after 45 mins per question and think I did enough to pass each one. Some small gaps I meant to go back and expand on and never got the chance but nothing left completely unanswered.
I’m surprised you guys remembered the answers to your calculations so clearly. I did find the NPV and volume discount acceptable and got net cost on the receivables question which seems to agree with the majority of you.
When there is so much information to read (I’m thinking Q4) it’s very tempting to jump in and start answering, thinking you’ll pull the relevant facts out but then you discover the net assets were supposed to be adjusted for NRV…@vipin70 said:
q.no1.
those who got NPV around 255k, and ARR 28% , you r going to loss 8 marks.
dont worry, i also going to lose same marks.We’ll all find out in due course but don’t be disheartened. ACCA exams are marked positively so that everything step you do correctly or valid comments you make are given marks and marks are given for later parts of a question if an earlier error follows through.
Remember when you do example questions often there are more marks available than the mark scheme so even if you make 3 separate mistakes you won’t necessarily lose 3 marks.
It certainly felt like there were more than 100 marks at stake today;)@polldoll said:
ACCA exams are marked positively so that everything step you do correctly or valid comments you make are given marks and marks are given for later parts of a question if an earlier error follows through.I am not sure of what you are saying, f9 pass rate has never exceeded 42% and the latest one was 37%, look what Cardine is saying, she’s been attempting it since 2004.
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no one discussing abt PE METHOD VALUATION…
@nevyana said:
I am not sure of what you are saying, f9 pass rate has never exceeded 42% and the latest one was 37%, look what Cardine is saying, she’s been attempting it since 2004.I didnt mean it was easy or impossible to fail, just that focusing on the things you did wrong doesn’t give you a realistic impression of your likely score. If you look at the marking scheme at the end of the June 2012 answers https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f9/exampapers/F9_2012_jun_a.pdf you will see that there are lots of things that you may have done that can earn you a mark. If you have gone through all the steps of the NPV calculation, you still get credit for calculating PVs and adding them up even if you used the wrong discount rate and you still get credit for commenting on financial acceptability as long as you comment on the NPV you calculated (even if that was wrong).
My comment about maximum marks seems to apply more to theoretical question parts though now I look at it again!
As we don’t have yesterday’s mark scheme we can only really be certain of losing 8 marks if we missed out a part question worth 8 marks. Cardine also mentioned that time management was a big issue and it is very difficult for us detail-oriented people to move on when we have a problem to solve!
Hope we all made it through this time 🙂 I’m off to revise P1 now.I’ve passed all my other papers with no problem but I am finding this paper very difficult, very difficult indeed! I studied very hard for this exam as I’m repeating with 47% & 48% in previous exams but it still didn’t pay off yesterday, Q1 was easy but lengthy to calc sales & v.c., uncertainty around FC as being relevant but included the incremental amounts! ARR was also easy but misread the question about before tax cashflows and used after tax figures! W/capital ques was ok and the writing parts were ok but as usual I hate Q4! I know I have failed yet again and I am really devasted. I have never considered quitting my studies before yesterday! Failure isn’t a nice feeling especially when you know you’ve really tried.
@maypen172 said: I know I have failed yet again and I am really devasted. I have never considered quitting my studies before yesterday! Failure isn’t a nice feeling especially when you know you’ve really tried.
You are absolutely right, it seems to be part of thier business, more failures, more fees to collect from exams and new books to be purchased, etc. if all of us had first time passes, they would not survive. What I am mostly annoyed by ACCA is that this all is maily commercial.
@nevyana said:
You are absolutely right, it seems to be part of thier business, more failures, more fees to collect from exams and new books to be purchased, etc. if all of us had first time passes, they would not survive. What I am mostly annoyed by ACCA is that this all is maily commercial.ACCA is a NFPO (non for profit organization). They do not seek profits.
Although fees are a bit expensive, I guess they have to cover cost to at least break even.
Also ACCA does not publish books! This is up to private compaines (BPP, Kaplan…)It’s the first time I sit the exam, and I found it quite fair paper!!
Some of the questions were straightforward…and it’s well known theory is a key part on this paper.Cheers up and never give up!!
Hi,
First good luck to everyone , My 3rd attempt , Quite easy then before or may be i had prepared a bit more. Hope to pass.
Q1 a) NPV around +273, FC included , nominal rate.
b) ROCE was before tax, so i used PBIT amount, added all /4 and investment/2 then *100, but got 80% which i know was wrong but dont know why
c) Interest rate, cost increases for both because variable rate, solution fixed rate or hedging methods
d) Receivable factors, Initial policy, management, collection policies, discount, factoring etc
Q2,a) AR discount was + benefit
b) discount on bulk, dont remember but i think was + benefit
c) miller orr I think was easy.don’t remember the figures.
Q3 a) WACC 9.3%, equity + Debt +preference
b) Wacc MV, just write 3 lines that it gives the current cost depending on MV, thought will write in the end but was no time.
c) convertible vs loan, less interest, delayed equity, convertible if MV of company will be up etc
d) Interest rate hedging, futures, FRAs, options, swaps
Q4 didnt write much just did calcualtions in last 30 min.
a) valuation, NAV = total asset- total liabilities
P/E = avg industry,Eps = profit/ shares
div historic ithink 6%
g=br b= 100-div % I think 7%
b) relative merits didnt write muct just use and benefits
c) cost of debt dont remember
d) D/E, just calculated didnt write any thing because time ran out.ANY SUGGESSIONS?
can any one tell me about IRR calculations?@aneelraja said:
hi
can any one remember the mark allocation of each part?They will publish the questions soon on the web site, all exams that went are there.
@aneelraja said:
Hi,
First good luck to everyone , My 3rd attempt , Quite easy then before or may be i had prepared a bit more. Hope to pass.
Q1 a) NPV around +273, FC included , nominal rate.
b) ROCE was before tax, so i used PBIT amount, added all /4 and investment/2 then *100, but got 80% which i know was wrong but dont know why
c) Interest rate, cost increases for both because variable rate, solution fixed rate or hedging methods
d) Receivable factors, Initial policy, management, collection policies, discount, factoring etc
Q2,a) AR discount was + benefit
b) discount on bulk, dont remember but i think was + benefit
c) miller orr I think was easy.don’t remember the figures.
Q3 a) WACC 9.3%, equity + Debt +preference
b) Wacc MV, just write 3 lines that it gives the current cost depending on MV, thought will write in the end but was no time.
c) convertible vs loan, less interest, delayed equity, convertible if MV of company will be up etc
d) Interest rate hedging, futures, FRAs, options, swaps
Q4 didnt write much just did calcualtions in last 30 min.
a) valuation, NAV = total asset- total liabilities
P/E = avg industry,Eps = profit/ shares
div historic ithink 6%
g=br b= 100-div % I think 7%
b) relative merits didnt write muct just use and benefits
c) cost of debt dont remember
d) D/E, just calculated didnt write any thing because time ran out.ANY SUGGESSIONS?
can any one tell me about IRR calculations?You’re very good!!!!!!! To be able to give that break-down after the exam. I made simmular mistake in ARR, but what we did wrong, we did not less the depreciation – full cost of invetment, because it was sline and no diposal preceeds. I not say the paper is hard, but the difficulties to do so manny things in time given. I always prepared and there is not an exam that I do not know what they’re asking, but ACCA need to reconsider the pressure they put us through in June and December each year.
WE NEED FAVOUR FROM JEHOVAH GOD!!!!!!!!!!! He can do all things.
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