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Phew where to start!
I attempted this paper and F8 the previous day Thursday. F9 was the paper during studying which I felt strongest in and had a better grasp in so in the days up to both exams I concentrated hard on F8. I attempted F8 which went ok then tried to go home and revise for F9 on Thursday pm but was brain dead to say the least (I also have a 14 month old baby at home who I look after when I’m not working part time and taking care of the home and studying so am brain dead most of the time anyways!)Friday morning I had a total mental block and trying to revise before the exam I couldn’t even do the simplest of calculations on my calculator! Almost considered not even going to the exam and had to close my books and just walk around trying to take in some air to get my brain going again.
I did take the exam and luckily remembered how to use my calculator and attempted all questions although have no idea if I have managed to scrape a pass or not.
Most of the multiple choice questions I hazarded a guess at through process of elimination. The calculation multiple choice questions I hope I got correct since the answer I came up with was part of the multiple choice answers.
Question one ok, question two I never managed when studying to practice an earnings yield question so attempted an answer by doing earnings yield ration which was given multiplied by eps x no of shares.
Question 3 don’t remember my answer think I may have got this correct although not sure if we were meant to recalculate sales or not? If not then I found this question not too difficult perhaps because i managed to practice a couple of similar questions before the exam.
Question 4 gee whizz! Attempted an answer think the assessor of my paper will have a chuckle when marking. Capital structure – I recalled related to debt and equity so wrote whatever came to mind although made no reference to MM.
Question 5 got a positive NPV – the incremental fixed costs were to be inflated by 1.10 each year but did we have to deduct the previous years increment? Hmmm.
Anyways so glad it is over! Hope you guys all did well and we don’t have to resit!
I didn’t find it too bad..one thing got me though
MCQ no. 19 seemed easy enough but i just couldn’t calculate WACC..the information given seemed to suggest the use of CAPM to calculate cost of equity but i just kept on getting answers that were way off.
Anybody??
No, you are wrong. Money depodits are between banks and depoditors, not between banks
Banks borrow from one another in an inter bank Libor market, no relevant to money market deposits
The statement said that money market deposits are loans between organizations such as banks…actually, the loans between organizations are called commercial papers…deposits are between banks and depositors.. How can you have deposits without depositors???
I work in a treasury department for a bank and we use the money market daily for short term borrowing and/or short term lending.
One party’s loan is another party’s deposit! (Regardless if both counterparty’s are banks or not)
But you have to follow up with bpp book, which clearly stated that money market deposits are between banks and depositors. Check up the wording please
What you mean is inter bank libor market. Also, the question stated the word organizations… This is relevant for commercial papers
There’s no such thing as a libor market!
Libor is a reference rate and is calculated from banks’ perceived borrowing rates from one another.
Borrowing from one another on the money market!ok now i am a little confused about FRA question. did it say receipt or payment? n what was the amount to convert i cant recall
Anyone can be a depositor….even banks. Where do you think they deposit their surplus cash?
Robert, they said that deposits are short term loans between various organizations… Money market deposits are either loans between banks, or between banks and depositors, not between organisations
Anyone can access the money market. You and I could, if we had a big enough short term deposit or wanted a short term loan. We would just go through a broker to arrange this.
I think this is when actual knowledge and experience is greater than a textbook.
Bpp did not tell anything about this when discussing money market deposits btw
I totally agree with you on that.
Some of the MCQs required calculations which were a bit long winded.
Bring back the old format id say!
Yeah that one was tough, if I had more time I would have tried to work it out.
I remember that question had two other statements that were correct. So the answer was either all of them correct or just the other two statements.
I put all of them as correctDo you mean question 19- capm on the MCQs.
I did the calc and could find it! Ended up guessing
I think beta of debt was wrong, because it understates business risk, we use beta of debt to calculate asset beta, we do not use it in gearing back
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