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

How did you deal with the 18% return on the investments in Option 2 and Option 3? I did not know what to do with that and I did not use it!? But I am sure I am wrong.

Did you inflated working capital (500,000$) in Q1 a when calculated NPV for the project?
tax relief for WDA was starting with T2, right?

<cite> @narinemalakyan said:</cite>
Did you inflated working capital (500,000$) in Q1 a when calculated NPV for the project?
tax relief for WDA was starting with T2, right?

I took tax in year two as it was payable one year in advance and the CAPEX date hadn’t been specified..
I didn’t inflate the working cap since, according to my understanding, it was in year 0.. But I think I got that wrong now 🙁

<cite> @kathyatk2 said:</cite>
Was the hedging question pay or receive 500,000 euros?

I think it was receive..

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

I got wacc as 10% incl bank loan…not sure if thats correct. IRR 4.7% aaplied 5 & 10% both came up as -ve bals….

The paper was fair , wacc 11.6% .

Anyone know how they will make npv . I carried over wrong figures for Sales and VC .
I did all the rest of the calc with the mistake . I put a note at the end with the correct figure and commented on my actual calculations for the extra NPV marks . Is that ok ?

Thank you to the lecturers and open tuition for your help.

For the WACC calculation, were reserves to be added to the MV of equity?

I’ve just spoken to acca they said it doesn’t matter if you didn’t tick the question box so long as you filled in all your other details on the front cover.

<cite> @bkali1 said:</cite>
Q1 NPV was around 4550 for me (but I don’t know whether that is right or not)

Q3 mmhedge today borrow was 489 euro (819 dollar) and 3 months time 827
fmh was around 824 for me (a little bit lower) but I might be wrong with these number

Q4a, share price 437

Q4b, EPS 27cent

q4c, EPS around 28-29c

I got the same – but I think I had 27c for the current EPS, not the revised EPS.
How did you adjust the PAT?

Did you include the 18% on 3.2m? And then did you net it off the tax?

18% of 3.2m = $576,000
Net of 20% tax = 460,800

I added that to the current PAT and then deducted 100,000 from it (I don’t remember why though)…

Then I divided the figure by 10,000,000 shares to get EPS.

<cite> @lfrancus said:</cite>
i think this paper was quite fair but i was bad at time management…. attempted all questions but did finish…. were you all able to finish in time…just wondering if am just slow…

THANKS TO OT

Me too Frank, I left 15 marks completely unsolved from my last question (Q. 3) and did the hedging parts in the last 10 minutes – I spent 5 mins on the theory and 5 for the FH/MM hedge.

The investment appraisal and WACC calculations were REALLY lengthy they took up most of my time cause I tried setting them out well for the examiner… But it was at the expense of the theoretical parts and the last question I attempted, which certainly wasn’t worth it 🙁

I got 4.7 irr too. Not that im confident about that figure though

<cite> @icedawn said:</cite>
Question 4 (d) was very ambiguous !!!! what was required ?
to discuss the factors afffecting traded bonds firstly? then dicuss facors affecting placing and venture capital ?
or discuss factors taking all three into consideration ?

I think it was to discuss the factors affecting choice of raising equity through placings/venture capital vs. trading bonds.

It seemed a little similar to the next part which asked for a debt vs. equity discussion..