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

@peldor said:
I did that but I think it was unnecessary. Question said pick better option, which can be done with just doing the above.

same, I did that a.s.a.p as time is running out. So i didn’t think of any shortcut
but it maybe safer to do that because who knows both alternatives do not offer financial advantage to the current policy?

It’s longer but it’s safer if the question is to trick you that actually both alternatives are not beneficial.

the paper was fair but did not finish, too many calculations to be done, Q4 did not finish but found it interesting, I first calculated the TAC and the credit balance since the customer was paying in 90days, On the credit balance i then calculated the finance cost using the borrowing interest rate which i thought was a saving since the customer was using the trade credit to finance his operations. this is the part that i answered what do you think guys

@mngwenya said:
the paper was fair but did not finish, too many calculations to be done, Q4 did not finish but found it interesting, I first calculated the TAC and the credit balance since the customer was paying in 90days, On the credit balance i then calculated the finance cost using the borrowing interest rate which i thought was a saving since the customer was using the trade credit to finance his operations. this is the part that i answered what do you think guys

you kidding me? calculation is not alot although not easy(tricky) but not complicated except NPV

if we were to fail(hope we don’t) it is our inability to score better marks in the theories area

@eugeneksc said:
So? Just calculate the PV of future net cash flow after tax using perpetuity formula (as if you are in year 5 now), and then further discount it to present value(in year 0)

stop right after u use perpetuity formula to calculate CF for year 5 and minus tax @ 30%.. No need to do further

@eugeneksc said:
well, either you’re right or i’m right.
i assume they want the present value as at year 0 cause the project hasn’t started yet, and it’s weird to assume a perpetuity value 5 years later to be worth the same today, so i discounted it to today’s value.

the one you did is Present value ..not Net Cash flow before tax :S

can anyone answer this question please…For number 1…we were given total Fixed costs….But when we do NPV calculations,do we take the incremental fixed costs that is fixed cost in year one is already given while for year 2,we have to take fixed cost in year 2 minus fixed cost in year 1????:S :S :S

this is my second attempt jus like the first time sooooo prepared but ratios sends me into a frenzy too much info
i did tsr, interest cover, roce, financial ratio

hope i get 50

@gillidy said:
this is my second attempt jus like the first time sooooo prepared but ratios sends me into a frenzy too much info
i did tsr, interest cover, roce, financial ratio

hope i get 50

doubt we need much ratios calculation to assist on
about maximising shareholders wealth

@volvic said:
Just a query on Q3..I think…The one about Working Capital Policy…as i remember the question was something like:

Discuss factors incluencing the formulation of a Working Capital Policy (7 Marks)

So I talked about the inventory system in place (JIT etc) and whether Supplier relationships were strong enough to depend on quick, efficient deliveries, Credit terms that can be offered dependent on market conditions and competitors, and Supplier payables days being reduced so influenced by no. of suppliers the company has to choose from and whether they had scope to negotiate longer terms etc. I related all these back to the question for a few scenario marks.

…why would the question above lead us to talk about financing of Working Capital (aggressive/conservative) like others have suggested?

Would be a miracle if I’ve passed but I spent a little while on those 7 marks and was kinda hoping they were in the bag!

I believe your answer is correct, I’ve checked my notes, the others were wrong about the aggressive/conservative/matching approach, don’t worry lol.

@eugeneksc said:
I believe your answer is correct, I’ve checked my notes, the others were wrong about the aggressive/conservative/matching approach, don’t worry lol.

doubt u don’t really understand about working capital policy. and the answer he wrote is more to working capital management

@rizenzo said:
Many thanksto txsean for posting the break down of the questions. I missed chunks of questions, panicked a little, and my hand wasn’t connected to my brain for most of the session. Nevertheless, after putting my mark estimates next to the questions, I’m hoping to have scraped through.

If people are questioning whether they passed or not, I recommend doing the same. I’ve thrown the questins in to a spreadsheet here. Just knock out my comments, add your own, and see what lessons you can learn from the exercise.

For me, it was almost all time management. I thought the questions were very reasonable, but my technique was terrible.

can definitely finish all within 3 hours if you stick to 45 mins per question strictly
however our answers wont be too comprehensive considering so much theories there

@mcwilliams said:
In question two all you guys are trying to calculate the cost of debt….it gave u it in the question. Therefore you didn’t need to know how long the bonds would last for.

I thought the paper was fine. And not time pressured if you were ready

And I mean before the new issue of bonds

Yes cost of existing debt was given, only had to calculate new issue which was 6.02% I think

@peldor said:
Yes cost of existing debt was given, only had to calculate new issue which was 6.02% I think

Correct