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

<cite> @united26 said:</cite>
I got +4million for the NPV

8% I think for the WACC but left out bank debt from the Cost of Debt and MV of Debt

Picked Forward Market 298k over MMH 296K

Can anyone remember the marks for Ac’s recievable Management factors? I mixed it up with Working Cap financing- really annoying me cos I had the right answer learned off a few times over beforehand but think just panicked when seen it and got mixed up.

I left the bank loan out because I thought capital related to long term and overdraft is short term. on past papers he has allowed with overdraft but I didn’t have time to add anything I thought was not necessary. I did enough unnecessary mistakes so I didn’t add anything on purpose 🙂

<cite> @hassanatcams said:</cite>
the ques 4 part regarding the working capital policy i calculated the current operating cycle and then the revised operating cycle by recalculating a/c recv, payable and inv days.
Then i calculated the revised a/c recv, a/c pay and inv vales on the basis of the revised recv, pay and inv days.
My revised a/c recv days and inv days had shortened and the new a/c recv value had decreased. i calculated the amount of decrease in a/c recv and applied the 5% interest on it to calculate the finance cost saving. was this procedure correct?

Don’t know if it is correct but that is what I did too 🙂

<cite>@leogr said:</cite>
applied 5 and 10% and got 5.5%

got two negatives as well and an IRR of 4.67 or i guess 4.7%

<cite> @kumail.alee said:</cite>
my money mrket hedge was more profitable…:;p

Really?? Are you sure – there wasn’t much difference between both.. They were both $29xxxx aand although I selected MMH, everyone here is saying FMH was cheaper :(… I think I must have made a calculation mistake because I covered foreign currency pretty well (conceptually)..

<cite> @merkada said:</cite>
for the unit did yall use 9000 4 the 4 yrs?

Yep.. that was fixed for the 4 year period wasn’t it? Or was it given as 9000 in the first year only?

The thing is, if we weren’t to use 9000 units then what else were we to use? :S

<cite> @merkada said:</cite>
to me it increased by 9000 per year

OMG REALLY? You mean like 9000 in year 1, 18000 in year 2 & so on? What was your NPV?

I even messed up the WACC question by including retained earnings – I actually went back to fix it 🙁

I guess I haven’t been reading the questions properly… 🙁

Hi can anyone tell me on the money market question it was three months right? and they gave you 9 % so do you have take the interest rate 9% x 3/12? To get answer?

Someone confirm please?

sorry dividing by four to get three months

Don’t worry del I chose money market hedge as well. It did look strange to me because in all the practice question forward exchange always seem to be the better choice.

Hey guys what did you use for the sales units in the NPV calculation.
Remember they said that the sales would increase by 9000 units every year.

Did anyone take into consideration that the sales units would increase by 9000 units EVERY YEAR for the NPV calculation?

<cite> @satmah said:</cite>
Did anyone take into consideration that the sales units would increase by 9000 units EVERY YEAR for the NPV calculation?

i did but i don’t know if it was correct

Same thing i thought, but the question stated that the machine would cause sales units to increase by 9000 units every year. They had to state it in the question for a reason.