*** F9 December 2014 Exam was.. Instant Poll and comments ***

My NPV came up to 2 million and something positive….anyone else got their NPV to be around two million?

I got lot of As in MCQs, and I got lot of As in F5 MCQs also:)

I got $2,570,000 for my npv or something close to dt

So by the end of this week we’ll know our fate

Of course MCQs were hard. It’s not F2 anymore. Why is everybody so surprised?

@matsamary@yahoo.com said:
same here, I totally missed book value WACC, I noticed that when I had like 10 mins left and just wrote why book value and market value costs might have been different

Same those few marks can make a huge diff not happy

the mcqs are a great idea since it really tests your knowledge and not just learning stereotyped questions. This will really be helpful if want to do p4 later

Colleagues!!!!!!!! I have taken another look at the paper and my response to what I presumed I submitted to the examiner are:
MCQ’s from 1 to 20 in the same order – A;A; C; A;C; C; C; C; B, A, A, D, A, B, D, C, C, A, C, D, A.

I worked under the exam pressure in the hall, but not at home. I laugh at what I remember I actually wrote for Q3, but these the thing we do when pressured.

The results are:
Cash Bal for Jan 370; Feb 710 & Mar 692. Current ratio – same period in that order are: 1:2.63; 3.2 & 3.1 I eliminate loan receipt on the basis that information lacking and thus rush my way to finish line – time constraint. Manufacturing business, surplus cash should not be invested on a long term basis – stock market, because of the cash requirement; variable overheads and wages are paid in the month they incurred. They should use short term investment options and maybe medium depending on the company operating cycle, management decisions and cash requirement of the business.

Conversion is likely at $131.12 and the Market price of conversion is $111.98; PE share price is $7.44 and I list some things past information and industry data

This is a Laughter as I did rubbish in the exam hall – it was the pressure to complete the paper, knowing that the MCQ’s were no HOPE and the administration should reward us at least 12 marks extract.
This what I did; Calculate the spot and forward and compare them – selling rate is applicable here, because goods/services has to be sold for receipt of cash. Spot $285,171 & forward $281,650. The company will receive more now than going into forward contract. Lost $3,521 if go forward.
The applicable interest rate in foreign as implied by the rate of exchange are: 1.04 x 1.042080 less 1 = 8.4%; 1.04 x 1.043131 less 1 = 8.5%. Colleagues, I did not put the one before and you know the answer is wrong. I recognize after but time did not allow me to correct. It was evident the if interest is 4% for $1, the it should be in proportion to the exchange rate as the interest rate parity state. In the theory, I wrote that one way is to invoice in own currency – where currency risk will be transferred to the customers. This is a good way to maintain the value of receipt.

The BIG one – Favourate!!!!!!!!!! I presumed I cap the max here 14 or 15
Every figures with inflation should be corrected with the rate of inflation – presumed that current rate. Sales 1.042 to powers of the applicable year, then multiply by the price for that year. Same for cost and Fix cost.
The results are: Revenue 2475, 2714, 4412 & 4774; VC 1097, 1323, 2084 & 2370. The fix cost amount for the year are: 155, 159, 164 &169. All figures are rounded and the amount are from y1 to y4 or y5 where applicable. With the tax at 22% and capital allowance on the reducing balance basis of 25% (99, 74, 56 & 169) the investment have a NPV – positive of 2.574m
I address the issue of correctly apply capital allowance instead of depreciation; interest charges already accounted for with cost of capital been 12% and inflation effect MUST be accounted for in investment appraisal as it impact on cash flows.

Another Good one for me in the Hall – 11 out of the 15; I presumed or more.
Mkt value WACC is 10.9%. slightly higher than BK, because of the poportion of debt increases. Equity Mkt Value 2340 (200/.5 *5.85), cost 10.9 (4% +(1.15*6)); loan notes 207 cost 4.82%

I would love your comments and here you can do the same for assessing your performance. We should write to ACCA – demanding free MARKS for the MCQ’s that was out side the syllabus – What do you think!!!!!!!!!!!!!

Regards,
Book value is what was stated in the question 850 and 200, and I apply the cost calculated early, which gives a WACC of 9.74

@Cardine said:
Colleagues!!!!!!!! I have taken another look at the paper and my response to what I presumed I submitted to the examiner are:
MCQ’s from 1 to 20 in the same order – A;A; C; A;C; C; C; C; B, A, A, D, A, B, D, C, C, A, C, D, A.

I worked under the exam pressure in the hall, but not at home. I laugh at what I remember I actually wrote for Q3, but these the thing we do when pressured.

The results are:
Cash Bal for Jan 370; Feb 710 & Mar 692. Current ratio – same period in that order are: 1:2.63; 3.2 & 3.1 I eliminate loan receipt on the basis that information lacking and thus rush my way to finish line – time constraint. Manufacturing business, surplus cash should not be invested on a long term basis – stock market, because of the cash requirement; variable overheads and wages are paid in the month they incurred. They should use short term investment options and maybe medium depending on the company operating cycle, management decisions and cash requirement of the business.

Conversion is likely at $131.12 and the Market price of conversion is $111.98; PE share price is $7.44 and I list some things past information and industry data

This is a Laughter as I did rubbish in the exam hall – it was the pressure to complete the paper, knowing that the MCQ’s were no HOPE and the administration should reward us at least 12 marks extract.
This what I did; Calculate the spot and forward and compare them – selling rate is applicable here, because goods/services has to be sold for receipt of cash. Spot $285,171 & forward $281,650. The company will receive more now than going into forward contract. Lost $3,521 if go forward.
The applicable interest rate in foreign as implied by the rate of exchange are: 1.04 x 1.042080 less 1 = 8.4%; 1.04 x 1.043131 less 1 = 8.5%. Colleagues, I did not put the one before and you know the answer is wrong. I recognize after but time did not allow me to correct. It was evident the if interest is 4% for $1, the it should be in proportion to the exchange rate as the interest rate parity state. In the theory, I wrote that one way is to invoice in own currency – where currency risk will be transferred to the customers. This is a good way to maintain the value of receipt.

The BIG one – Favourate!!!!!!!!!! I presumed I cap the max here 14 or 15
Every figures with inflation should be corrected with the rate of inflation – presumed that current rate. Sales 1.042 to powers of the applicable year, then multiply by the price for that year. Same for cost and Fix cost.
The results are: Revenue 2475, 2714, 4412 & 4774; VC 1097, 1323, 2084 & 2370. The fix cost amount for the year are: 155, 159, 164 &169. All figures are rounded and the amount are from y1 to y4 or y5 where applicable. With the tax at 22% and capital allowance on the reducing balance basis of 25% (99, 74, 56 & 169) the investment have a NPV – positive of 2.574m
I address the issue of correctly apply capital allowance instead of depreciation; interest charges already accounted for with cost of capital been 12% and inflation effect MUST be accounted for in investment appraisal as it impact on cash flows.

Another Good one for me in the Hall – 11 out of the 15; I presumed or more.
Mkt value WACC is 10.9%. slightly higher than BK, because of the poportion of debt increases. Equity Mkt Value 2340 (200/.5 *5.85), cost 10.9 (4% +(1.15*6)); loan notes 207 cost 4.82%

I would love your comments and here you can do the same for assessing your performance. We should write to ACCA – demanding free MARKS for the MCQ’s that was out side the syllabus – What do you think!!!!!!!!!!!!!

Regards,
Book value is what was stated in the question 850 and 200, and I apply the cost calculated early, which gives a WACC of 9.74

I defo got same pe ratio, npv and wacc as you 🙂 however your MCQ are very diff from mine

Hello,
I would like to ask, question 3, information need not to be qualitative?

By the way I hope you answer is correctly provided…

@jydeson said:
can the moderator assist in uploading mcqs’ answers

I agree, I have searched internet and can’t find anyone who will just give the answers for mcq yet. I am impatient I know, sorry.

2.6.1 Benefits of a share repurchase scheme
(a) Finding a use for surplus cash, which may be a ‘dead asset’.
(b) Increase in earnings per share through a reduction in the number of shares in issue. This should
lead to a higher share price than would otherwise be the case, and the company should be able to
increase dividend payments on the remaining shares in issue.
(c) Increase in gearing. Repurchase of a company’s own shares allows debt to be substituted for
equity, so raising gearing. This will be of interest to a company wanting to increase its gearing
without increasing its total long-term funding.
(d) Readjustment of the company’s equity base to more appropriate levels, for a company whose
business is in decline.
(e) Possibly preventing a takeover or enabling a quoted company to withdraw from the stock market.