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

<cite> @satmah said:</cite>
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.

I don’t remember the exact words but the incremental 9000 units each year was in relation with the old machine they were replacing. They could have as well given us the capacity of the old machine, and the capacity of the new machine, and we would have calculated our own incremental units.
The word incrememntal meant extra contribution – as in relevant values. If you remember, the Fixed cost were also incremental – the only ones relevant to the investment.
Don’t you think at that level of increase in units (double each year), both the fixed costs and working capital levels will not cope!! Think about it?

Forgive me if I am wrong

I got 4510 for NPv and 292 for the forward contract WACc 8 % I know I am wrong

<cite> @Sabrina1942 said:</cite>
I got 4510 for NPv and 292 for the forward contract WACc 8 % I know I am wrong

NPV was 4 million+ and the Forward maket was 296000 and money market 294000 and the WACC was 12.2% I think I am correct 😀

Return of 18% should exclude issue cost? N regarding the factors to be considered for the traded bond, equity finance,can I mention on the dilution control issue?

<cite><a href=”https://opentuition.com/members/Lambyang/" rel="nofollow">@Lambyang said:</cite>
why didnt u use irr estimate formula? i get it and i use 3% and 5%, 3% will get you a positive npv

yes i used 5% and 3%- the cost of capital was 4% though to make the NPV =0

<cite> @donizback said:</cite>
yup right the exam was fair indeed but yea Q3 was a bit tricky with the part a, but i managed to write something( might be stupid i dont know :P) but I think it was managable exam I managed to do the exam and wrote a lot extra too and was free 10 mins before the time finished

Conerning Question 3: The factors for the receivables policy ! I guess the same question came out last year ! Again with 8 marks ! Quite tricky and amazing at the same time. I’ve just elaborated on those factors:
(1) Assessing creditworthiness
(2) Credit limits
(3) Invoice promptly and collect overdue debts
(4) Monitor the credit system

could you tell me the answer for financial objective

<cite> @meazakiros said:</cite>
could you tell me the answer for financial objective

I wrote maximization of SH wealth as the first objective, and for the second I wrote profit maximization (and explained the difference). I could be wrong though…

<cite> @sharlene20 said:</cite>
yes i included pref shares along with debt and equity, however i didnot include the loan as i did not have a market value???? any take on this

I used I(1-T) as the cost and the book value as the market value, because I thought the MV would be the same in the case of an untraded loan (i.e. bank loan).. I think that was wrong 🙁

All I can say is, I hope we both pass! (Y) 😀

I think we come under pressure – I know I definitely did, don’t know about the others. I was freaking out, using wrong figures for values EVEN THOUGH I had calculated the correct figures.

The art of professionalism is to be able to clear out the ambiguities and solve problems using a lot of random data in the time given – to be able to work with all that we have. If we mentioned our assumptions I think the markers will give us the credit due.

In all honesty the examiner could have REALLY complicated F9, by asking very detailed, specified questions. Vague but rather unsophisticated questions are much easier to handle because as long as we state our assumptions and stick to the rules I think we get the marks we deserve.

@nevyana said:
That is how this examiner is maintaining low pass rate- by unclear questions, not by suffisticated scenarios. 2/3 of the people have different interpretation from what he ment in the question and they will fail, like I failed last time because I wrote on completely different topics that he ment, although I was very well prepared. This exam is not fair at all.

??????????????

The exam was the easiest ACCA exam I have ever taken. Easier than F1, easier than MA1. The questions were not unclear, I presume English is not your first language?? If you study and revise, you gain the marks. If you don’t, you fail. If you don’t read the question then you have no business aspiring to work in finance and accounting where accuracy is critical and the devil is in the detail. (Double facepalm…..)

<cite> @satmah said:</cite>
Thanks for your comment. But i think if they used the word incremental, that would have changed the meaning to what you are saying. But the question made no mention of incremental. What they said in the question was that as a result of investing into the new machine, it would cause production units to increase by 9000 units every year. The question then went on to say to assume all units produced are sold.

What do you think?

You see that’s your interpretation of the question. And my view is my interpretation of the question. None of us remembers the exact words. The questions will be on ACCA website in a few days and we can interpret with a clear mind then. But have you ever seen any such questions in your study and revision where the capacity of the machine is not fixed or set? In such questions, we are looking for that extra contribution.

<cite> @nevyana said:</cite>
That is how this examiner is maintaining low pass rate- by unclear questions, not by suffisticated scenarios. 2/3 of the people have different interpretation from what he ment in the question and they will fail, like I failed last time because I wrote on completely different topics that he ment, although I was very well prepared. This exam is not fair at all.

You are quite right. The questions were manageable if you got the interpretation right. The exam was not as direct as some people think. That’s how we fail by thinking it’s easy.