Forums › ACCA Forums › ACCA FM Financial Management Forums › *** F9 June 2011 Exam was … Post your comments here and vote in Instant Poll ***
- This topic has 332 replies, 133 voices, and was last updated 13 years ago by joevassallo.
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- June 12, 2011 at 10:07 am #84234AnonymousInactive
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Q1) Investment Appraisal with inflation, Capital allowance + Working Capital
Q2) Calculate WACC before and after bond issued and comment findings
Q3) Ratio analysis- achieve maximising shareholders wealth or not
Q4) Money Market vs Forward Contract
Compare with spot topic :
1.Working capital-Miller Orr, cash budget, receivable
2.Right Issue of shares/foreign exchange risk management
3.NPV with inflation and tax
4.WACC cost of capital wiht CAPM/Calculation of beta
3 out of 4 spotted correct.
Not so tough compare with few year sittingsJune 12, 2011 at 10:48 am #84235AnonymousInactive- Topics: 1
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@vicky2009 said:
Q1) Investment Appraisal with inflation, Capital allowance + Working Capital
Q2) Calculate WACC before and after bond issued and comment findings
Q3) Ratio analysis- achieve maximising shareholders wealth or not
Q4) Money Market vs Forward Contract
Compare with spot topic :
1.Working capital-Miller Orr, cash budget, receivable
2.Right Issue of shares/foreign exchange risk management
3.NPV with inflation and tax
4.WACC cost of capital wiht CAPM/Calculation of beta
3 out of 4 spotted correct.
Not so tough compare with few year sittingsI wonder if you took the exam, but it’s not tat tough
but the marks allocated to the theories made it tough
we had to make points within the time allocated.June 12, 2011 at 11:27 am #84236AnonymousInactive- Topics: 0
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WACC and investment appraisal can be found in every paper… so it’s not a big deal to guess them…
and foreign currency hedge was 100% as in the previous two sitting this area had not been examined.June 12, 2011 at 4:07 pm #84237papar was a little different and difficult from previous sitting so markin would definalty not b tough so hope more guys pass including me 🙂
June 13, 2011 at 9:12 am #84238@princefury007 said:
it was a fair paper but was really time pressured!
q1 used money rate and inflated all from 1st year
time horizon of 4 yrs. left it undone
risk incorporation , i talked about the the meaning, procedures, adv and disadv.of sensitivity, expected values,and adjusted paybackq2 b4 bond issue i got wacc 12% after issue i got 11%
factors influencing mkt value of traded debt. i talked about the expectation theory, liquidity and segmentation theory. i also talked about the level of risk involved, size and type of bond etcq3 13 marks did not get time to do it
but did sale and lease back and equity finance raising.talkabout wat they are and effect and disadv and adv
explained nature of script dividend and its effect and adv and disadvq4 did the forex change calculation and think money market was cheaper than foward rate
for int rate and exchange rate i talked about purchasing power parity theory and interest rate power parity theory
for the inventory did eoq normal without discount at 120000units p/y and then did 30000unit with discount .. 120000 was cheaper.. didn’t do the receivable part
i only hope i have done enough to pass! cos timing was challenging. and i also hope there will be mark for steps even wen i make mistake, i hope i get subsequent marks@princefury007 said:
it was a fair paper but was really time pressured!
q1 used money rate and inflated all from 1st year
time horizon of 4 yrs. left it undone
risk incorporation , i talked about the the meaning, procedures, adv and disadv.of sensitivity, expected values,and adjusted paybackq2 b4 bond issue i got wacc 12% after issue i got 11%
factors influencing mkt value of traded debt. i talked about the expectation theory, liquidity and segmentation theory. i also talked about the level of risk involved, size and type of bond etcq3 13 marks did not get time to do it
but did sale and lease back and equity finance raising.talkabout wat they are and effect and disadv and adv
explained nature of script dividend and its effect and adv and disadvq4 did the forex change calculation and think money market was cheaper than foward rate
for int rate and exchange rate i talked about purchasing power parity theory and interest rate power parity theory
for the inventory did eoq normal without discount at 120000units p/y and then did 30000unit with discount .. 120000 was cheaper.. didn’t do the receivable part
i only hope i have done enough to pass! cos timing was challenging. and i also hope there will be mark for steps even wen i make mistake, i hope i get subsequent markshow did you calculate ke?
June 13, 2011 at 12:22 pm #84239AnonymousInactive- Topics: 0
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@ tzxsean. You such a funny chap. Nice memory too.
The paper was quite easy, not too difficult I’d say.
I attempted all, hoping to get good marks in Q1 and 4 and full mark in Q2. Didn’t do too well in the first part of Q3 but attempted the other parts.
Lest I forget, I should be off now!!!… got to study for F7 tomorrow…see y’all
June 13, 2011 at 1:08 pm #84240AnonymousInactive- Topics: 1
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@ibukunoni said:
@ tzxsean. You such a funny chap. Nice memory too.The paper was quite easy, not too difficult I’d say.
I attempted all, hoping to get good marks in Q1 and 4 and full mark in Q2. Didn’t do too well in the first part of Q3 but attempted the other parts.
Lest I forget, I should be off now!!!… got to study for F7 tomorrow…see y’all
wad made u think tat im funny?
June 13, 2011 at 1:45 pm #84241AnonymousInactive- Topics: 0
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@ tzxsean.- I said you funny ‘cos of your sense of humor. You wrote in one of your earlier post that you vividly recall the questions because you stared intensely at them not knowing what to write, that was kinda funny to me.
June 13, 2011 at 3:00 pm #84242@ibukunoni said:
@ tzxsean. You such a funny chap. Nice memory too.The paper was quite easy, not too difficult I’d say.
I attempted all, hoping to get good marks in Q1 and 4 and full mark in Q2. Didn’t do too well in the first part of Q3 but attempted the other parts.
Lest I forget, I should be off now!!!… got to study for F7 tomorrow…see y’all
So what was answer for Q1 – the NPV?
Also what about the exchange rate question. Was the forward hedge better.
June 13, 2011 at 6:01 pm #84243don’t no if its correct but what i did for Ke is that
since we were giving the the dividend up to 2010 i think. so and i no that Po is also cum so i added the ex div to the current div of 2010 to make it cum div then i rearrange the formula by replacing do(1+g)/re-g with do(1+g)/po +g. so also we were also expected to calculate growth! it was all i could think off as there was no time to be mopping around. and according to most post i think we still got same wacc some were marginally higher or lower . i suspect this is due to rounding up!June 13, 2011 at 7:16 pm #84244AnonymousInactive- Topics: 0
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@tzxsean said:
nope…the formula is not wrong…
when we use perpetuity formula..what we get is the estimated amount of cash inflow we will receive through the life cycle.in order to evaluate business value, the cash flow amount we derived from perpetuity formula will need to be discounted to PV and sum it up with other PV to get NPV.
i know this is abit ouf of topic and it’s pointless to argue over this, but trust me on this, that formula for perpetuity is used to calculate the SUM of DISCOUNTED CASH FLOWS to infinity from YEAR 5 onwards. i did some higher math classes so i know what i’m talking about.
if you don’t believe me, go take out your microsoft excel and experiment yourself, discounting year 5-100 using the same cash flow, add them up, and then compare it with the figure you get using perpetuity formulaEdit:
try putting some thought into it – if you do not discount the cash flow every year, the cash flow will NEVER converge. in other words you will have infinite cash inflow if you sum up to year infinity.
e.g., you get $1 every year, if you get it every year to year infinity, you will end up with cash inflow of $infinity, hope you get what i mean…June 13, 2011 at 8:46 pm #84245it was within reach
June 14, 2011 at 2:34 am #84246AnonymousInactive- Topics: 0
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Personally think theory is weighs heavier than the calculation. The 3rd question was a disaster
June 14, 2011 at 2:59 am #84247AnonymousInactive- Topics: 0
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i think some question not cover in my text book and pass exam
such as what factor that effect to market value of trade bond?
this question got 7 marks. it is very hard to answer it.
and other question such as which factor that effect to establish working capital policy? some of my said that they wrote about conservative, matching and aggressive approach. but i think it might be wrong because it is approach not factor.June 14, 2011 at 3:34 am #84248AnonymousInactive- Topics: 0
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Questions was fine..but time management and retriving memory was difficult..hope for 50 but it all depends on the kindness of the examiner..
June 14, 2011 at 4:38 am #84249AnonymousInactive- Topics: 0
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It’s the worst exam I ever took. Lots of theory question. I skipped about 25 marks. Therefore, I dare not expect for 50. Will prepare myself for retaking it next time 🙁
June 14, 2011 at 8:05 am #84250AnonymousInactive- Topics: 0
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dear all
if you make a silly mistake such as copying an incorrect number and the method used in the question is correct,even the formula used, is this type of mistake have alot of weight in marking. thanks.
silly mistakes from my end were: inflating vc and fc incorrectly..copying incorrect number etc
June 14, 2011 at 10:05 am #84251wow,f9 was rather ok.Ques 1 positive npv,Ques 2 wacc decrease after issue of bonds,Ques 3 & 4 coments & finally PPPT & IRPT foreign exchange risk and so on…..
June 14, 2011 at 12:55 pm #84252AnonymousInactive- Topics: 0
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The more I write the more blurred my mind is. Can’t recollect what I wrote. Only remember I counted my marks yet not enough to pass : (
June 14, 2011 at 2:11 pm #84253AnonymousInactive- Topics: 0
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June 14, 2011 at 4:13 pm #84254AnonymousInactive- Topics: 0
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in simulation anaylsis if you say that it is based on what if scenrios and the possibiliy of different outcomes. is that correct? i think in q1 part c if you mention the three different types you will get 1 mark and defie another 1 mark am i right?
June 14, 2011 at 4:35 pm #84255good news (may be ) for all guys hav given f9 paper i heard today from my friend that the examiner intented to increase the pass rate by 10 % on this attempt ( GOD plzzzzzzzzzz my friend news wld turn into reality)
June 14, 2011 at 4:42 pm #84256@mschembri said:
in simulation anaylsis if you say that it is based on what if scenrios and the possibiliy of different outcomes. is that correct? i think in q1 part c if you mention the three different types you will get 1 mark and defie another 1 mark am i right?Q1(c) – the 3 that I mentioned were Sensitivity Analysis, Expected Values and Simulation. Simulation is like sensitivity analysis with the difference that “what if” happens to various variables at the same time. I think there will be 1 mark each if you mention any 3 and an extra 4 for definitions between them.
June 14, 2011 at 6:42 pm #84257AnonymousInactive- Topics: 0
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@ovaiskhan said:
good news (may be ) for all guys hav given f9 paper i heard today from my friend that the examiner intented to increase the pass rate by 10 % on this attempt ( GOD plzzzzzzzzzz my friend news wld turn into reality)hope so 🙂
June 14, 2011 at 6:44 pm #84258AnonymousInactive- Topics: 0
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@joevassallo said:
Q1(c) – the 3 that I mentioned were Sensitivity Analysis, Expected Values and Simulation. Simulation is like sensitivity analysis with the difference that “what if” happens to various variables at the same time. I think there will be 1 mark each if you mention any 3 and an extra 4 for definitions between them. - AuthorPosts
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