*** F9 June 2011 Exam was … Post your comments here and vote in Instant Poll ***

@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

this exam would be terrific to a well prepared student, which i wasn’t.

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

can any body give me the ans of NPV?
iz it 1.2m?

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

Can anyone remember what there NPV of project was in Q1?? I had +4150

Seems 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.

v v v v v v v hard then last attempts so bad and disheart .

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.

I think the Forward hedge was better to use – it was cheaper than the Money market Hedge payment.

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.

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.

I think the answer is yes you need to relaese the full amount in Y4.

That’s what I did at least.