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 8:25 pm #84107AnonymousInactive
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tzxsean what did u get for question 1 part b i think it was…asking abt cal npv perpetual succession??
June 9, 2011 at 8:28 pm #84108@05008967 said:
I also had (750) in year zero and recovered in year 4. There were no other adjustments to WC required.In the question it was said Director was estimating with four year Horizon, and project was to continued further… so no question of working capital recovery….i think so
Do you remember on the WACC question, when including the bonds did you have these figures…
(250m/250m + 62.4m + 40m)*Ke ?
June 9, 2011 at 8:28 pm #84109AnonymousInactive- Topics: 0
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@joevassallo said:
I think the answer is yes you need to relaese the full amount in Y4.That’s what I did at least.
but it will go beyond 4yrs
June 9, 2011 at 8:30 pm #84110AnonymousInactive- Topics: 0
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June 9, 2011 at 8:31 pm #84111AnonymousInactive- Topics: 0
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@joevassallo said:
I think the answer is yes you need to relaese the full amount in Y4.That’s what I did at least.
y did u release it
June 9, 2011 at 8:35 pm #84112AnonymousInactive- Topics: 0
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in WACC it was (Ke*250)/352.4 + (Kd1*62,4)/352.4 + (kd2*40)/352.4
Least thats what I did…June 9, 2011 at 8:46 pm #84113AnonymousInactive- Topics: 0
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hard, and too much room for interpretation. hope i am in the luck side:)
June 9, 2011 at 9:02 pm #84114AnonymousInactive- Topics: 0
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@peldor said:
in WACC it was (Ke*250)/352.4 + (Kd1*62,4)/352.4 + (kd2*40)/352.4
Least thats what I did…MV of new debt was 40 mil? I thought that was par value? Im guessing u put 250 mil + 62.4 mil + 40 mil = 352.4 mil? right?
I put market value as sum of future cash flows, that is, interest + redeem value of $105 then discounted using cost of capital 7%. Is that wrong?June 9, 2011 at 9:07 pm #84115I think the new MV of bond should be $42, i.e. $40/100*105.
The working capital should be all released in Y4. The continuation after 4 years of the project is for the 2nd part of the question where perpetuity comes into play.
I dont think 7% is correct – the cost of debt for the new bond needs to be worked by the IRR.
June 9, 2011 at 9:18 pm #84116June 9, 2011 at 9:22 pm #84117AnonymousInactive- Topics: 0
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what growth rate was in Q2?
June 9, 2011 at 9:24 pm #84118AnonymousInactive- Topics: 0
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hi joevassalio, if the MV is $42, did you need to discount the 105 to the redemption date?
June 9, 2011 at 9:31 pm #84119AnonymousInactive- Topics: 0
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paper was not too bad, the time needed was nearer to 4 hours than 3 in my view, would be happy to get 50% to be honest…
June 9, 2011 at 9:57 pm #84120AnonymousInactive- Topics: 0
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for growth i did: dividend in 1st yr * (1+g)^n yrs = div in last yr…..cannot remember the exact percent i got.
June 9, 2011 at 10:02 pm #84121AnonymousInactive- Topics: 0
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Div growth I got 2,98%, rounded it up to 3%
June 9, 2011 at 10:49 pm #84122@shane2e said:
hi joevassalio, if the MV is $42, did you need to discount the 105 to the redemption date?
hi shane yes I discounted the $105 to the redemption date 10 years at discount rate. But I used Capital as $100 not sure if I was correct!
Also I worked the growth div as 2.98% rounded to 3% using the past dividends.June 9, 2011 at 11:22 pm #84123AnonymousInactive- Topics: 0
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lack of time hope for 50
June 9, 2011 at 11:40 pm #84124AnonymousInactive- Topics: 0
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I’m abit confused……why did the examiner say that assume any funds used in hedging must be borrowed, I did include the borrowing interest rate in the money market hedge, but was my error to also apply the borrowing interest rate to the forward hedge making my money market hedge better????
June 10, 2011 at 12:18 am #84125AnonymousInactive- Topics: 0
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hope for pass with 50%
June 10, 2011 at 1:42 am #84126AnonymousInactive- Topics: 0
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Ran out of time, attempted Q3 on ratio analysis last
June 10, 2011 at 2:54 am #84127AnonymousInactive- Topics: 0
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sigh ran out of time too. left a few of the 6,7,8marks theories question blank 🙁 .. and i forgot to recover the working capital for Q1 and got NPV of 713k ..
June 10, 2011 at 3:15 am #84128AnonymousInactive- Topics: 1
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someone asked me bout PV of cash flow in perpetuity ?
I just take the cash flow before tax on year 4 and divide with 12%
and minus tax of 30%at first I thought of applying inflation of 3% onto the cash flow but at the end I din’t do it. Should I inflate it?
June 10, 2011 at 4:17 am #84129This time theory is more than calculation.
Hoping for 50 marks too… haih…
June 10, 2011 at 4:43 am #84130AnonymousInactive- Topics: 0
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can anyone tell me if i wrote in q1c if i wrote irr,npv and profitability index if any is right
June 10, 2011 at 4:58 am #84131AnonymousInactive- Topics: 0
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hoping for 50 as well!!!! Might have been disaster for me. not completed Q1 i, ii, Q2 ii, and others attempted but seem answers not complete. Hoping…..
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