- This topic has 198 replies, 84 voices, and was last updated 13 years ago by
.
- Posts
@olaf said:
For question 1 I disregarded fixed costs as there was nothing mentioned about them that they are additional (incremental) fixed costs.
I was wondering about that but all the practise questions I did there was clearly mentioned about FC. Here they seemed to me irrelevant.
Anyway at the end of the day it’s probably 1/2 mark for including them, I stated the comment why I didn’t take them into account….question 1 stated that fixed cost are relative 2 projrct….
@imtired said:
For qn 1b) did anyone realized the qn saying: machine 2 costs has included inflation? Since we r using nominal rate, does this means machine 1 we also have to include inflation?Exactly that’s why I used 7% for EAC calculation….not sure if it was correct but I was wondering about that as well and finally decided to use 7%.
In my opinion the sentence to ignore taxation and capital allowance was for maintenance costs that if there was not this sentence they would require tax deduction.@olaf said:
Exactly that’s why I used 7% for EAC calculation….not sure if it was correct but I was wondering about that as well and finally decided to use 7%.
In my opinion the sentence to ignore taxation and capital allowance was for maintenance costs that if there was not this sentence they would require tax deduction.I used 12% though. I didnt use the figure there. I dunno how i calculated another set of figures out and stating that the fig must include inflation. This qn really stunned me wif two sets of wacc
@angusyiu said:
the difference for mine is more than that. By the way, did you guys divided the annual borrow rate/deposit rate to get 6 mth rate for your calculation?? I think we have to?hey yes u had to divided
the rate. the rates given were for the entire year@olaf said:
For question 1 I disregarded fixed costs as there was nothing mentioned about them that they are additional (incremental) fixed costs.
I was wondering about that but all the practise questions I did there was clearly mentioned about FC. Here they seemed to me irrelevant.
Anyway at the end of the day it’s probably 1/2 mark for including them, I stated the comment why I didn’t take them into account….the question did mention it was related to the operation
Hello everyone,
Too much to write in a short time.20 min left for Q4 and it was a mess in a hurry.
1)which formula of dividend used,what growth rate used.one thing i used was a total dividends in year 2.
2)and one thing i didnt understood was how to find out variance and transaction costs for miller Or model i left this Q.
3)both wacc with the values given no ungearing.used capm for ke value.Test not too bad, Islamic finance new topic so had to be expected,wish i had read the article on ACCA website a couple more times.I suppose the dividend growth model question in Q4 was a matter Of using Yr 2 dividend and then discounting the answer at a year 1 discount ?
hi guys, there was no ungear nor degearing, the inf was all there
cost of equity was 12% in first instance and 14% in second, i hope i am right.
exams was not bad needed more time.@aneelraja said:
Hello everyone,
Too much to write in a short time.20 min left for Q4 and it was a mess in a hurry.
1)which formula of dividend used,what growth rate used.one thing i used was a total dividends in year 2.
2)and one thing i didnt understood was how to find out variance and transaction costs for miller Or model i left this Q.
3)both wacc with the values given no ungearing.used capm for ke value.1. I used total dividend of years 3. may be the formula will be
1000*1.03 / .12-.03
2. Didnt u see the formula in the last page? requirement was .. a)return point and upper limit.
3. yea I also used camp . current ke may be 12 , and previous years 14. (if im not wrong)
🙁 pray for me .it was standard question paper . Made some silly mistakes. Hope examiner will understand my situation .:( pray for me guys.
@alokito said:
1. I used total dividend of years 3. may be the formula will be
1000*1.03 / .12-.03
2. Didnt u see the formula in the last page? requirement was .. a)return point and upper limit.
3. yea I also used camp . current ke may be 12 , and previous years 14. (if im not wrong)
🙁 pray for me .i did same with you for 1 & 3.. 🙂
- Topics: 0
- Replies: 3
- ☆
hi every one! can anyone plz tell me wht rate was to use in Q#1, is it 7% post tax or is it 12% pre tax? plz tell me wht rate was suppose to use in Investment Appraisal and in EAC?
Thnxx…
- Topics: 0
- Replies: 3
- ☆
4a part dvm was quite simple. we just hav to multiply the total earnings into pe ratio to get the value of company
- Topics: 0
- Replies: 3
- ☆
was it as simple as if industry P/E ratio was 5 and Company earnings was 3000,
3000 x 5 = 15000 Value of company…..Q4
For people complaining about no dividends in the current year. Remember the dividend for the 2nd year were given.
And remember that DVM formula in which Do(1+g) = D1
so you were already given the D1 value 😀
- Topics: 0
- Replies: 9
- ☆
i made a mistake in q 1 part 2 in asset replacement question where i did not include initial investment.. ohh my stupidity .. but i wander if they give marks for steps in f9 ?? for may be for just putting the cost or putting annuty factor and so on ?
- Topics: 0
- Replies: 15
- ☆
Could anyone upload the F9 questions June 2012? I need the marks for each question and for each subquestions.
I was thinking last night, do you find it odd that a good few people on this board struggled with the discount rate in Q1?
I went 7% part a 12% part b, mainly due to the fact tax was part of the NPV calculation and i assumed the rate of 12% cost of capital covered tax, hence using it in a would have applied a taz cost twice
- Topics: 0
- Replies: 2
- ☆
the p/e qn required us to compute the current earnings given the earnings of 3 prior years. earnings thus grew by by the square root of 4300/3000)-1 which gave me about 19.6percent. used that to compute the current earnings and multiplied the earnings by 5 to get the mkt value
- Topics: 0
- Replies: 2
- ☆
the p/e qn required us to compute the current earnings given the earnings of 3 prior years. earnings thus grew by by the square root of 4300/3000)-1 which gave me about 19.6percent. used that to compute the current earnings and multiplied the earnings by 5 to get the mkt value
I must’ve sat another ACCA F9 exam as the exam I sat was hard and lengthy, not what I consider a fair exam to even come close to finish and do well! Devastated!
Not a good feeling for 2nd attempt!! 🙁- Topics: 0
- Replies: 17
- ☆
Hello Everyone i just want to comment regarding Q.1 for the calculation of npv i used after tax rate of 7 % the reason being that in WACC there r 2 components Ke & Kd in case of Ke there is no tax but in Case of Kd it is tax deductible thus for npv calculation i took 7 % rate after tax…. however in part b asset replacement Qs…
i used 12% the reason being that it explicitly stated that ignore tax & capital allowance….thus i used 12 % before tax so do comment whether it was logical or not….. thanks…..
In Q4 i did make a blunder i took year 3 dividend value & use that in dvm formula & got an utterly ocnfusing figure 1444444… something like that…. but hoefully i might get 2.5/4 as i correctly calculated Ke…..- Topics: 0
- Replies: 26
- ☆
Hi for Q4 did anyone get Ke= 12%, WACC= 10% and new Ke = 14% and new WACC = 10.3%? Thanks
- Topics: 0
- Replies: 2
- ☆
Oh my God,I used before tax cost of capital for NPV?So my answer is wrong.How many mark will loose?
Quote:hello again,
i do understand the the rest, but to calculate the spread u need variance of cash flow, transaction costs and interest rate . And either i was stupid or i was confused but i didnt saw these figures any where in the question.
And i am more confused because it was an easy Q (if i had the figures).
- The topic ‘*** F9 June 2012 Exam was … Comments and Instant Poll ***’ is closed to new replies.