*** F9 June 2015 Exam was.. Instant Poll and comments ***

Hey guys, any sort of reply appreciated
for q1 I wrote so much. A page of calcs explaining and a page of info. Just hope it’s enough.

Didn’t like q2= think I got the theory but ok though

Q3 the factor. I said that they would be losing 33% of their income with costs from factor and that if they focused on negotiation with customers stating they need to talk credit days. Talked about the need for business to get receivables days down from 60 to 40.

Question 4 – honestly didn’t mind this question.the only thing I didn’t do was compare both situations. (I calculated the share rights issue and the calcs but didn’t compare to not)
However I used a lot of expinaitiom (1page to explain. Capital structure. Talked traditional view, Miller and modigliani etc)

Hated Q5. Calcs are completely wrong. Lots of theory again. With the mcqs being a joke (imo) and this being a resist I just HOPE I pass. Honestly. Head is fried.

Any sort of reply etc would be cool
Thanks
Michael

Yes…after adjusting probabilities it was 29 with current inflation rate of 4 percent

@emo777 said:
I think you messed up with 5% premium 😀 i think it was given to mislead us. The thing you had to do is to multiply net cash raised after issue costs by 100 and then divide by 104 to find the nominal value of loan to be redeemed. The you calculate the saving on interest. They took it from bpp revision kit, and you need premium only for calculation of cost of redeemable debt, which was not relevant in this case.

The premium was relevant! There was a clause in the question that the bondholders would only allow them redeem the bonds before maturity if they can pay a premium of 5% to the market value.

$11,200 – the issue costs gave us the net amount remaining to use for the redemption.

The next step was to calculate the MV of the loan by multiplying the nominal value by 104/100. Then you must add the premium.

The next step is to deduce the nominal amount of the bonds redeemed. And this is calculated by subtracting the net proceeds of the issue from the MV(with the premium) and multiplying the result by 100/104.

I got that 9,000,000 was the nominal value of the bond that was redeemed, leaving 21,000,000.

On the Question 5, it said variable costs were on nominal values, does it mean that we put the costs as they were, or we had to use the general rate of inflation , 4%??

Hey guys. I’m new here. Will Mr. Moffat be able to post his answers of the MCQ for us or no ?

Re Q5 – I used only VC @ inflation rate of 10%. Is that incorrect ? and did we have to do 3 NPVs I hear ? 🙁

Thanks in advance

mcqs was really hard

Hey Guys, I calculated the selling price wrong for 5th Question Of F9 exam today. Will I get any marks for rest of the calculations I did ?

yes

@afuyegallas said:
The premium was relevant! There was a clause in the question that the bondholders would only allow them redeem the bonds before maturity if they can pay a premium of 5% to the market value.

$11,200 – the issue costs gave us the net amount remaining to use for the redemption.

The next step was to calculate the MV of the loan by multiplying the nominal value by 104/100. Then you must add the premium.

The next step is to deduce the nominal amount of the bonds redeemed. And this is calculated by subtracting the net proceeds of the issue from the MV(with the premium) and multiplying the result by 100/104.

I got that 9,000,000 was the nominal value of the bond that was redeemed, leaving 21,000,000.

I thought it should be 105/100? May be am wrong

F9 Question 5 – I calculated the selling price wrong. Will I get any other marks for rest of the calculation ? Please help!

What did you get for q17 McQueen. The 1000 euro to dollar for 12 mths . It was a confusing and stupid question

Agree totally . no Wacc and no capm is crazy,

Agreed paper was harder than expected..mcq are downright unfair and I’m surprised the examiner doesn’t relax them a bit following december 14 feedback alone..was looking forward to wacc calcs and cashflow and disappointed we got stuck with the harder more challenging questions in this paper..very unfair 🙁