FM*** F9 June 2014 Exam was.. Instant Poll and comments ***

https://opentuition.com/members/marta0101/

I made a big mistake... I did the first question the project E's NPV using the initial investmnt of 5m...the problem was that while calculating the capital allowance i used initial invstmnt of 10m...will i get any marks or half or no marks at all....i did it very well on that question..:(

For 1a npv question I had negative 306,000 (approx), did anyone else get close to this?

@kinolga: how did you find MV?

I got around 12.3 for Wacc too

can some one please help how did you get market value for Q 4 therp

This paper was hard ...Question 4a ...Man, What was about?i started to panic..LOL. the issue cost has to add??Bad Time management..Question 1 Nvp negative too..The share price i got 4.70 i think n right issue ratio 1:2 is it? WAcc 12 somethings...InshaAllah done enough to get a pass mark n move to next.:)..

Feels a bit relief now about the question 4 i got the same as u ...LOL ,hope it right..:) n pass this paper inshaAllah

I can't wait for the exam paper to be posted so Mike can shed some light, especially with that NPV question. I just don't get how it could have been negative. I was so confident leaving the exam room, but coming on here has certainly depressed me due to all the different answers being posted on here. It makes you doubt your answers.

Q#2. WACC - The int. had just been paid which means that the $107.14 was the cum int market value. Did anyone deduct the $7 int. from the $107.14 to get the ex. int market value, and then use that $100.14 as the cost in period 0 when doing the I.R.R.? (Effectively the cost of the bond). That's what I did.

Sorry, John not Mike

Examiner threw a curved ball in Q2 as it related to acid test and overdraft. Other questions caught me off-guard. Wasn't expecting certain questions to come, given that this is the last format was hoping something easier like in past papers. Did my best and answered all questions. It's better to attempt something and gain half mark than leave it blank and gain nothing. Time pressure was an issue. I came home had a long sleep. P series here I come!!

My NPV was -ve 22,600..and i inflated the SP, VC ad FC...seems my answer is very near to yours

:( :(

I also calculated my overdraft using the current ratio :) hope we got it good

Hello Colleagues! I have read some comments and presumed that this exams - the markers will be happy to know that we'll not have to do this paper again. The questions seemed so easy, but some of us may have missed the point. The catch for question #1 was the incremental fixed cost. Most of us may not applied the techniques - inflate y1 to y4; but fix cost y2 onward is the incremental amount. This is something like 23 after applying the rate of inflation to 750 and get 776. The rest of the project life you use the incremental amount as the examiner stated. Bank overdraft was apart of the quick - current assets less inventory, divide by payable plus the Bk OD figure. This give a negative working capital cycle in the year 2015 and thus it is evident that management have an aggressive working capital policy. They rely heavily on short term borrowings. I do not remember anything else now; but those points stood out in my mind. Overall the paper was lengthy as usual and time management was the key. It was manageable!!!!!!!!!! to get the require 50% to pass. August 8, 2014 is the big day. We can work the paper and post our answer - which we'll all criticize and educate each other. I am of the opinion that by Monday or Tuesday the paper will be available and thank everyone for sharing - even-though you keep your mock exams private. Regards,

My answers were; NPV= (-47000) WACC=9.43 Beta equity=1.2 TERP=4.52 Capital rationing = 100% C, D, E & 20 % A, which gave maximum NPV around 3028000

what did u guys write fr...the theory question in working capital....i mean q3..

as soon as this exam ended, i was happy because i tried 90% questions and most of them are easy review past papers as many as possible really help but, after read this post, i turned to be nervous, i realised my mistake: q1, last year capital allowance, i forgot to deduct scrap value, and required description about soft capital rationing was totally goofed q2, negative or positive, i have no idea what's that for q4, three objectives, i just sqrt these figures rather than calculate for each year... these scores are easy but missed i think in this paper, only two questions are tricky: the one is q1 "mutually exclusive", we have to compare two possible combinations, or analyse opportunity costs... i chose the compare them, not clever but simple. the other one is q2 "internal methods"...... i believe ACCA should bold such words to make exam more fair

NPV is negative 44000 or something. I angry at my self for not being able to answer part (b) in question (1) which asking about capital rationing and was very easy question.. Also the discursive questions want more time and concetration that I haven't. Despite this I hope pass...,,,

my q1 to q3 same answer like yours

The NPV was it think 4600 and while the WACC was 12.3 and the Teritical exprice 4.9

was not too bad of an exam. got a negative for the npv, and straightforward questions in terms of theory. but think messed up question 2. fingers crossed

Slighty worried now, majority seem to have negative NPV, however, I got $0 NPV, which seems to tie in with one of the following questions!!!

Exam was ok. Just not enough time to complete all questions.

I think the TERP was 4.5 or so if I recall well

Wow!! I messed up the fixed cost, still had a negative NPV but lost some marks. Q1b was proving messy to me because I understand that when NPV=0 that I should calculate IRR, just couldn't wrap my hands around it properly. I knew I had to do something about the overdraft but it wasn't coming up and I couldn't see what to do, I just put in the figures like that, funny enough the current ratio for 2015 was 1.4 times which I got so that made me comfortable. I hope I get a 50% score that's all I need! anything on top of it is a bonus.

Qn 1 I got positive npv $2233. Maximum npv was around $3.5m. we invested $10m. $5m went to project E which we had to invest in no matter the npv outcome because we needed the project for the business to remain competitive. That left $5m to be invested in A B C D. For this we do PI and invest in projects with the highest PI. Project D and B had highest PI and where mutually exclusive at the same time. So invest in these first and the rest in project C which has next best PI and was divisible. Maximum NPV is therefore around $3.5m. Can't remember the exact figure.

I got a positive NPV of 64 using the investment of 5000 not 10000 as I believed thTs the whole pot of funds they have didn't mean will use all for PRoject E I am not sure..... Ranking was ok, market efficiency was ok... WACc was ok.... Not sure about the rest Good luck to all of us, I believe it was tricky,lots of requirements and time constraint paper!

My pv was $6.4m and positive npv of £1.4m against $5m capital investment. WACC was 9.3% I think my TERP was $4.51 something, including issue cost. really feeling nervous as this was my second attempt. :(