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 9, 2011 at 5:59 pm #84081AnonymousInactive
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@eugeneksc said:
One last question… If I worked out the retained earning for each of the past years wrongly, I would obviously get wrong ROCE, ROE and gearing ratio(though it shouldn’t so different such that it would affect interpretation), would I be penalized for that…? I’m dead on Q3 if I will be penalised.i only calculated ROCE and why u need to compute retained earnings? just use PAT/total equity + LTL
June 9, 2011 at 6:02 pm #84082I think that was a bit tricky but not difficult. You just have to deduct the profit.
Problem is it will affect the ratios – both ROCE and ROE.
Good luck.
June 9, 2011 at 6:08 pm #84083this exam would be terrific to a well prepared student, which i wasn’t.
June 9, 2011 at 6:09 pm #84084AnonymousInactive- Topics: 0
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June 9, 2011 at 6:18 pm #84085AnonymousInactive- Topics: 0
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f9 was relatively okay. even the examiner made i clear that one can’t pass his course with the numbers alone. ‘u just have to know how to communicate as an accountant’…he said in his comment i printed out from open tuition
June 9, 2011 at 6:21 pm #84086Not really – Dividends come out of profits. So the profit in retained earnings would already be reduced. @tzxsean
June 9, 2011 at 6:23 pm #84087AnonymousInactive- Topics: 0
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can any body give me the ans of NPV?
iz it 1.2m?June 9, 2011 at 6:31 pm #84088Q1 – I made the NPV as $1.2m positive. Agree with you on this one @hassan1214
June 9, 2011 at 6:45 pm #84089AnonymousInactive- Topics: 0
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whats up peeps
a very time pressured exam
question 1 i totally messed up. my npv was like negative 5m….(dont ask how)
about incorporating risk i mentioned increasing cost of capital, using probabilities, etc.
second question i wacc was 10.9% and then after it was 10%
for market value of bonds i mentioned time period to maturity, expectations theory, liquidity theory and segmentaition theories
for the last part i talked about miller and modigliani and using an optimal wacc level
third question i worked out a few ratios and concluded company had a decreasing interest coverage ratio although dividend yield was increasing 🙁
debt finance was not a good idea and i think i recomended equity finance as a solution which will help build a better working capital policy and i also opted to freeze dividends.dividend scrip? wtf is that? never came across it in my studies but i talked about the dividend theory and how in a perfect world its the investment side that brings optimal performance to a company….i guess i f’d up there.
4th question i talked about the 4 way equivalence model and how interest rates and exchange rates are linked together via it.
and forward hedge was better
question about order i didnt do
not sure if i have passed it. first question let me down
June 9, 2011 at 6:48 pm #84090AnonymousInactive- Topics: 0
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@joevassallo said:
I think Working capital attitude is management attitude to risk (aggressive or conservative), Previous policy formulation an size/organisation structure.I think ratios to be worked are ROCE/ROE/Interest cover/Financial Gearing (capital)/ EPS/DPS/Total Shareholder Wealth. This is what i calculated though I did not have much time to comment on them. Time problem as usual….
Did anyone get NPV $1,2m for Q1 (worth 13 marks)?
DVM should be worked on “Past dividends” – I worked it out as 2.8? Anyone agree. Cost of debt was already after tax – so remain 7%.
dont know about NPV cos i f’d that question up. yes i used 7% for the first bond and then worked out the kd on the other bond via IRR.
damn i forgot to do EPS. i had dividend yield, capital gain, gearing.
June 9, 2011 at 7:14 pm #84091AnonymousInactive- Topics: 0
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Can anyone remember what there NPV of project was in Q1?? I had +4150
June 9, 2011 at 7:17 pm #84092AnonymousInactive- Topics: 0
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i attempted of 89 marks only 🙁 hoping to get 50
June 9, 2011 at 7:17 pm #84093Seems my paper went pretty much like everyone else’s. The exam itself wasn’t so bad, I just needed another 3 hours to finish it. So much pressure!
Q1a I did ok on and the last question. It was downhill after that. Q3 was solid! Screwed up my WACC calculation on Q2, missed a load of parts out of other questions. Will be very very lucky to pass but I said that about tax and got 58…….fingers crossed.
I didn’t do any past papers before I sat the exam so I’m blaming it on lack of practice.
June 9, 2011 at 7:23 pm #84094I got NPV as positive 1.288 million
I only studied exchange rates yesterday….I got Forward & money market as same amount 🙁
For WACC before I got something like 10.98 or something then after about 10.4…not sure I remember commenting it fell by 0.55%
Crazy exam…. result should be interestingBest wishes to everyone
June 9, 2011 at 7:36 pm #84095AnonymousInactive- Topics: 0
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v v v v v v v hard then last attempts so bad and disheart .
June 9, 2011 at 7:36 pm #84096AnonymousInactive- Topics: 0
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I messed up the perpetual cash flows part in ques 1b cause i could not remember.
Also, I do not know how to handle working capital in ques 1a. I just put in yr 0 and
left it there. Is that correct or is there more to it?
And in 2c i did not know how to analyse whether issue bonds decrease WACC.
Also, could someone also tell me how many marks are for ratio analysis of maximise
shareholder wealth in ques 3a? I messed that up too :(….i dunno why
Time pressured exam for me.June 9, 2011 at 7:58 pm #84097AnonymousInactive- Topics: 0
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I saw the questions and said to myself…you know this…you did this….but why the hell I did’t know how to start question 2…and why do the questions seem so familiar but i can’t remember how to approach them……snap out of it and start writing, start calculating, never expected so much theory though…….alas nothing worked…and 50 seems unreachable…..so December it is.
June 9, 2011 at 8:01 pm #84099AnonymousInactive- Topics: 0
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stasi u did all gud
June 9, 2011 at 8:08 pm #84100I think the Forward hedge was better to use – it was cheaper than the Money market Hedge payment.
June 9, 2011 at 8:13 pm #84101AnonymousInactive- Topics: 0
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…..and how do you calculate the market value of the new bonds?
June 9, 2011 at 8:13 pm #84102AnonymousInactive- Topics: 0
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Too many calculations to do in the time though knew how to.
Gave up on completing them and concentrated on the discussion parts. Hope that is enough to pass.June 9, 2011 at 8:15 pm #84103Paper was absoultely good.. as usual time management was the key
June 9, 2011 at 8:19 pm #84104AnonymousInactive- Topics: 0
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did anyone cal an amount for working capital in yr4? by this i mean not releasing the 750 as the sales wld continue beyond the 4yrs used in the question.
June 9, 2011 at 8:22 pm #84105AnonymousInactive- Topics: 0
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q3 was indeed a nightmare for me not sure if i score any marks there guess i was extremely overwhelmed by having to do so much….my my the theory was awful i thought i was writing P1 at one point (lol)
June 9, 2011 at 8:25 pm #84106I think the answer is yes you need to relaese the full amount in Y4.
That’s what I did at least.
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