*** F9 June 2013 Exam was.. Post your comments ***

<cite>@aneeb123 said:</cite>
you are right because the rate given was Euro borrowing rate… i just wrote that the dollars needed deposited will earn interest uptill 3 months.. just wrote a comment

Others have said there was a $ deposit rate of 4% for once you had converted your borrowed Euros, however I only remember seeing the 9% Euro borrowing rate.
Anyone else able to clarify what information was provided? I know it’ll only be 1 lost mark if there was a depositing rate of interest stated, just for peace of mind.

<cite>@thebear said:</cite>
according to my study text , BPP already give a reminder that the preference shares should not be included in the WACC calculations

to quote chapter 15 , page 302 of the study text by BPP

” when calculating the weighted average cost of capital , the cost of preference shares is a separate component and should not combined with the cost of debt and cost of equity “

wait, i have seen it in the book. they DO include pref shares, and why shouldnt you?

was money market hedge preferable????

<cite> @donizback said:</cite>
lol you just lose one mark and yea even if your NPV is wrong and you comment according to your NPV that it is positive accpet the project you then also get 1 mark for commenting if u know that your NPV is wrong just assume it. I asked it from my teacher who is a F9 marker 😀 So cheers

Well teachers knows best good luck bud

<cite> @Sabrina1942 said:</cite>
Also I hope she go easy on us lol, hey I was quite surprise to see the exact same quest for the receivable management policy lol good thing I work through all those papar well not all most lol

😀 yea the same 7 easy marks for just telling the management policy awesome indeed it was a nice exam and I managed to complete it 10 mins before time 🙂 i was so happy InshAllah we will pass

My suggested answers to the June 2013 Paper F9 exam will be uploaded later this week.

<cite> @neeraramai said:</cite>
What theory questions came?

<cite><a href=”https://opentuition.com/members/Lambyang/" rel="nofollow">@Lambyang said:</cite>
1st question wacc 11.6%…am i right?

yes me too got 11.7%

<cite>@bayigga said:</cite>
I also got around 8% on WACC. As long as your WACC is lower than Ke (cost of capital)
The two debts had tax relief and pref. shares was 7%
I am not so sure of my calc of IRR to get the cost of redeemable debt. (I used disc. factors 12% and 5%).

i messed up my IRR calculations but i knew there was a way to calculate it without doing the IRR but couldnt remember how to put it. The MV of the log loan was 104.5 which round to 105 which is the redeamable amount all you had to do was minus the tax then divide by the MV and you would get the cost of debt yet i wasted time on it since i got two negative figures and still end up getting a wrong figure hope fully though i pass

<cite> @kayfabuacca said:</cite>
Q1, How did u guys treat it? The question says we should dicsount using nominal terms approach. I solved it by applying the inflation rate to the varisbles in year 2, is that right guys? I also calculated incremental working capital.

Q1 was probably the easiest questions for me. Nominal terms so all the tax and inflation had to be calculated

<cite>@sunilthetutor said:</cite>
I have worked the ACCA F9 paper from a student angle and within the exam time.

It looks really straight forward and relatively easy.

I can imagine most F9 students will be very happy?

Trust me any of us would have scored highly if we were given that paper without the real examamination pressure. There is something about being timed in a real exam hall with invigilators roaming about……… lol

I just couldn’t believe myself when, it came to the translation, transaction and economic risks. I knew exactly what they wanted but the words just disapeared from my head. One minute to go, and my mind unlocked but too late to do anything. I could only right them as headlines and hope to get at least 1-1/2 mark…………… hahahahaha

it was a fair exam but time pressure went blank on question for calculation of growth

<cite> @johnmoffat said:</cite>
My suggested answers to the June 2013 Paper F9 exam will be uploaded later this week.

thank you

<cite> @mrgenius100 said:</cite>
I got an insane npv for q1. 4.9m on a 5.5m investment or something like that. Couldnt see where i went wrong though.

The mm hedge I made at around 1900 better. Again, not sure on this.

On wacc I got another ridiculous figure of 8% but I think I messed up bank debt.

Did u work back the investment appraisal question to see where u went wrong, what discount factor did u used, did u inflated all prices, did u take the incremental working cap in period 1-3 and recover it back in yr 4 also did u add the scrap value into taxable cash flow as well as deduct it from the capital allowance in the balancing fig. Most important did u calculated the tax one yr in arrears. Or it could be a transposition error which u shouldn’t worry abt if ur workings are there… Hope this help