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FM*** F9 December 2015 Exam was.. Instant Poll and comments ***
Post your comments about F9 exam belowPaper was OK... Messed up the last question because I ran short of time. Fingers crossed for Jan 18th.
the paper was ok .. only had issue with answering the theory part
Hi
Are they gonna publish the paper with answers before 18th Jan?
They didn't do for sep exam.
Thanks
Money market hedge is acceptable.
Discount on receivable management isn't feasible.
Npv Positive.
Effect on WACC increases.
Mcqs:
C
C
A
A
D
A
D
C
C
A
A
B
B
B
C
A
B
D
A
B
don't think so
I found section B fairly ok and think I should get 50% on this section, although I was very pushed for time and rushed my last answer.
I thought Section A was tricky and to make an educated guess at a lot of those questions. I hope it doesn't pull my mark down too much.
@addy007 said: Money market hedge is acceptable. Discount on receivable management isn't feasible. Npv Positive. Effect on WACC increases. Discount included an increase in credit sales of 20% which meant increase in profits, overall benefit was higher if discount option is taken
Affect on WACC decreases for me from 11% something to 10.5 %
NPV was positive something around 90k
Leading was cheap.. all three were around 30k with difference of 1000 something..
Settlement discount should be accepted.. 50K something benefit... 18k something cost..
I can't remember figures accurately so they are not precise..
Gearing was 40 something :(
Theory was subjective of course..
Yes Leading was cheap for me also
For last question I calculated WACC before taking in account issue of new finance.. than I calculated taking it into account..
what you guys did?
leading was cheap for me also but I wasnt sure if we were supposed to add borrowing costs? because they mentioned being short of funds and payment was due in 6 months.. if we had to apply interest then it would have changed answer.
for MCQ I had:
B
A
B
A
C
A
for the first 6
and
D
A
D
A
D
for the last 5, thats all I remember
@jaypee24 said: leading was cheap for me also but I wasnt sure if we were supposed to add borrowing costs? because they mentioned being short of funds and payment was due in 6 months.. if we had to apply interest then it would have changed answer. for MCQ I had: B A B A C A for the first 6 and D A D A D for the last 5, thats all I rememberI did take interest... i guess we have to take it into account..
@ehsanshah said: For last question I calculated WACC before taking in account issue of new finance.. than I calculated taking it into account.. what you guys did?yes same but i got WACC intially 11.4%,after the new loan notes 11%,then talk about M&M....Q4b are they asking about capital rationing?
for the last MCQ I added 17cents back to the share price, not sure why though! it was either C or D, I thought C would have been too easy for a 2 mark question so decided to be a bit creative! lol
@misschile100 said: Yes I wrote about capital rationing and I think my WACC also reduced to 11% too after the loan note issue!hooray!hope it is the right answer.
@ehsanshah said: For last question I calculated WACC before taking in account issue of new finance.. than I calculated taking it into account.. what you guys did?That's the right way to do it I think. Unfortunately for me my laziness got in my way and I thought I would calculate WAcc without taking the new finance into account at the end but I forgot!!!?
I did the same, I got 11.4% and then 11.7% but was probably wrong, hoping to get follow through marks and working/method marks to save me! :\
@tyjtht said: yes same but i got WACC intially 11.4%,after the new loan notes 11%,then talk about M&M....Q4b are they asking about capital rationing?Yes I wrote about Hard capital rationing and Soft !!!
@misschile100 said: I hope so too!! What was your market value debt to equity gearing ratio?38.5%
@ehsanshah said: Leading was cheap.. all three were around 30k with difference of 1000 something.. Theory was subjective of course..how do you calculate leading? i wasn't sure about it so i got forward cheapest
Guys what was your NPV??? Was it Positive ? Number starting with 9 something? lol
@ehsanshah said: Guys what was your NPV??? Was it Positive ? Number starting with 9 something? lolyes 93000,around there
me too!, did you just comment on how it is in line with industry average and despite this, their interest cover is a lot lower? wasnt sure what else to add and ran out of time cos I skipped it initially
edit: talking about the gearing question @ 38.5%
@tyjtht said: yes 93000,around thereThats Cool!!!! And for discount I said it was feasible... benefits total were starting from 5 !!! and for future contract I wrote it was cheaper and there is no need to be certain about timing and amount of settlement... disadvantage premium should be paid now and traded in few currencies and so on. What about you?
@misschile100 said: You have to convert it at the current spot rate and that was the amount you would have to pay for it then if you were leadingi multiplied it with the half year borrowing rate of usd :(
@misschile100 said: It was positive but can't remember the exact figures but I don't think it started with 9i got 1,122,000 as answer. the figures are kinda too perfect, guess something went wrong.
@misschile100 said: Yes benefits total was starting at 5 and cost like 1.8 or something like that but the benefit was 3somethingCool stuff !
@misschile100 said: I got 1something too can't remember the exact figureI got 1 something also
Section B was easy compared to previous years. Especially last 2 questions. i got NPV about 1000+ and last question i found WACC 11.% after issue and 11.38% before issue so WACC falls as more debt is issued, suggested more debt to be issued than equity since the lower the WACC the more optimal WC management
in npv calculation how did you guys inflate the S.P and costs by :-
1) 4.7% + 4.7% for second year
or
2) value x (1.047)^n
which did you use?
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