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I also said that cash operating cycle can be both positive and negative.
And I gave an example of service industry (no inventory, little customers and more payables)
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Frm my analysis the company didn’t meet their set objectives. Q4a
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Does anyone know exactly what was expected inQ1b? I was totally swept off myfeet.
It was my 2nd attempt at f9 today and what I have learned from both exams is that you need to know the theory. You cannot rely to pass on numbers only as with all the formulas twists and turns plus time pressure it is highly unlikely that the final calculations will be correct. Good luck everyone.
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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?
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.- Topics: 0
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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!!- Topics: 0
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My NPV was -ve 22,600..and i inflated the SP, VC ad FC…seems my answer is very near to yours
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🙁 🙁
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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,
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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 3028000as 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 helpbut, 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 missedi 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
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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…,,,
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