Forums › ACCA Forums › ACCA FM Financial Management Forums › *** F9 June 2014 Exam was.. Instant Poll and comments ***
- This topic has 222 replies, 86 voices, and was last updated 10 years ago by rutikanga.
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- June 6, 2014 at 6:20 pm #174778
Yeah W.C was 110 days but I got quick ratio 1.1 something like that
June 6, 2014 at 6:22 pm #174780Mutually exclusive meant to me you had to choose either. I went for highest Pi index and excluded 2nd best. I ran with remainder and had saving of initial investment. Negative npv
2nd question using ratios nice but time consuming resulted in higher overdraft and payables to be funded. Aggressive policy in place.
Q3 was nice. Wacc was grand. Degear and regear was con. Cant remember partc but share hypothes wasnt bad.
Q4. Asked eps div and share wealth said 1st two no and last 1st yr yes and last yr no due to static div policy. Terp lovely question included costs cos had to be raised. Last part sources made poor attempt cos of timeJune 6, 2014 at 6:24 pm #174782@kutiez2005:
But did you take Project E into consideration, therefore limiting the remaining funds to $5m before choosing between the others?June 6, 2014 at 6:26 pm #174783It stated maximum NPV, so I did A, B and C, but I wrote a comment on why I was taking B over D.
June 6, 2014 at 6:26 pm #174784I’ve just remembered that I left out efficient market hypothesis to go back to but didn’t, can anyone remember how many marks that was? I have a feeling it was quite a few!
June 6, 2014 at 6:27 pm #174785@Byron – yes I did 🙂
So all of projects E, D and C and $500 of $2500 investment in A (ie 20% of A)
June 6, 2014 at 6:28 pm #174786I have to say for non english first language speakers mutually exclusive is very unfair. Me and colleague had different interpretation and we speak english as first language though perhaps not well.
June 6, 2014 at 6:28 pm #174787Learn Islamic finance terms parrot fashion they said. They will definitely be examined every sitting they said………….
June 6, 2014 at 6:29 pm #174788Why would you consider project e since npv is zero
June 6, 2014 at 6:30 pm #174789For Q4(a), the one with the three objectives, I got:
– Objective 1: not achieved in both 2013 and 2014, but moving towards target, perhaps will be helped by expansion
– Objective 2: achieved in 2014 only
– Objective 3: total shareholder return exceeded target of 5% in both years, but the target was rot in line with the cost of equity which was 12%Didn’t manage to write a lot like the examiner’s answers though as I was heavily pressed for time.
June 6, 2014 at 6:31 pm #174790@tallaghthoop – because they have to invest in that one so although the NPV is zero it still uses up $5m of the available $10m funds
If you ignored it but then only used $5m to capital ration then you would’ve got the same total NPV 🙂
June 6, 2014 at 6:32 pm #174791Oh no!
just realised i put external hedging techniques instead of internal!
can anyone remember how many marks that was for?
June 6, 2014 at 6:32 pm #174792@kutiez2005:
Great! Thank you so much….although I think we will have been expected to consider the other combination as well to gain full marks.June 6, 2014 at 6:33 pm #174793q5? there was a Q5 as well? 😛 just kidding Objective 1 wasnt achieved, Objective 2 was achieved in 2014 and Objective 3 was easily achieved in both years!!
June 6, 2014 at 6:35 pm #174795@kuzco – only 5, not so bad 🙂
June 6, 2014 at 6:35 pm #174796@Kuzco: 3 internal methods x 2 marks = 6
I suggested:
– opening a foreign bank account
– creating costs in foreign currency, like opening up a factory in the foreign country
– invoicing in the domestic currency
– leading receipts and lagging paymentsHope I got all of them right.
June 6, 2014 at 6:36 pm #174798Its last on list in anycase that part of question has five marks three of which is Pi index and ranking thats the key part to question. Sure part c has 6marks for rationing discussion?
June 6, 2014 at 6:37 pm #174799AnonymousInactive- Topics: 0
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I hope f9 has no variant like other papers
June 6, 2014 at 6:37 pm #174800Thanks
June 6, 2014 at 6:38 pm #174801@Ahmed: Haha! Sorry my bad, it was a typo…God forbid we had 5 questions 😛
June 6, 2014 at 6:39 pm #174802The capital rationing 1B was only 5 marks. Every single comment is about that :O
My NPV was -71. It was obviously going to be negative, it gave a huge hint in the question and in the requirements.
Question 2C, analyse liability and asset position. What a stupid question to ask for 8 marks. The only change was going to be in year too when the COS decreased to 60%.
Regearing was around 1.08 something.
Overall quite good. Hope to pass!June 6, 2014 at 6:41 pm #174803I thought that aswell. Since they put so much emphasis on the November being zero and it being a money maker for the company.
What did you guys do for the machine disposal? The capital allowance threw me on that one, did we have to work backward and calculate the original cost of the machinery? The question only mentioned that the initial cost of investment 5m was allowable for cap allowances. So I just put the disposal amount in.
I got a positive NPv of like 2m….
June 6, 2014 at 6:41 pm #174804@ismaeelt:
We were also required to discuss the change in working capital financing policy. In the first period, I got 51% of current assets financed by current liabilities and this had increased to 76% in the second period, which shows a move from a conservative to an aggressive working capital financing policy.June 6, 2014 at 6:44 pm #174807June 6, 2014 at 6:47 pm #174809Examiners are fcuks. When 8 marks goes for something that suggests these people want more. Hence waffling introduced. Anyway my understandin g of q1 was investment was limited to 500 and when project e is non positive we concentrate on other projects.
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