FM*** F9 June 2016 Exam was.. Instant Poll and comments ***

Yes but it said foreseeable future which makes me think perpetuity. Part b has left me v confused

The m and m multiple choice ...can you believe i put agency cost and the last option ... i thought agency and issue costs was the same

Can anyone remember the market value of the new loan notes? Was it the 16000 and what was the new cost of debt? Wasmt it 8 by .75 .I was left confused when my was increased to 10. I believe it was a computational error

Can we list all the mcqs and answers? If anyone can remember

last 20 number mcq how to calculate share price

I didnt recognise this from my studies. I think i guessed .05 or something

I got 730 too ?

My MCQ 1D 2A 3B 4C 5D 6C 7A 8B 9B 10C 11A 12B 13D 14B 15C 16D 17A 19C 20A. Q1 Npv (137.6) Q1b positive Npv can't remember Q1c finance for funding or maturity gap for sme's I wrote about overdraft as the funding is only short term Also wrote about venture capitalist Q2 Dividend valuation model was 494.70 P/E ratio was 412 Net asset was 484 Q2b was about weak, semi-strong and strong form. Q3 net payment was €600,000.00 6 months forward was 600,000/ 1.367 = 438917 MMH 600,000 needed so deposite at 1.01= 600/1.01= 594059.40 Convert to sport @ 1.3706 Hence 594059.40/1.3706 = 433,430. Then borrow 433430 @ 1.025 = 433430 x 1.025 = 444260 Q3 b was about translation, transaction and economic risk Q4 MV of equity was 4017060 Loan note 12746 Bank loan 8000 Wacc 9.82 After the bond all mv remain same but loan note which change to 16992 So new wacc was 9.83 only 0.01 change in wacc On the over trading Recalculated Working capital circle was 67 days in 20x5 and 70 days in 20x4 Current assets/ current liabilities was ....can't remember Acid test was 0.47 in 20x5 and 0.48 in 20x4 To determine over trading I compared above to the sector averages given To overcome was reduce trade receivable days as it was over 100 days compared to 75 sector average. Reduce trading to its ability Improve on production as no if days to turn inventory to good for sale was twice industry standard. Also wrote about paying th long term debt of 30k and the overdraft Disclaimer above are my opinion they may not be correct as this paper is my worstnight mare ever! I have been attempting since 2008 and have attempted over 10 times while passing all other 13 exams 1st attempt. I nearly gave up untill few nice people from this platform offered encouraging and extremely helpful private messages. You know yourself. I simply can't thank you those enough!!??? By your advice I think I might just have made it this time around. Keep you posted after results day. Good evening everyone.

Do anyone remember the question number for mcq that asked share holder total return?? Ques 2?

Q4 WACC before is 9.85 and wacc after is 9. 71. Q5a. Npv -137,599 Q5b. Npv 36M+ Q5c. Discuss probability Q3a. MMH and netting Q3b. Discuss types of exchange rates risk Q2 mv = 583.88 p/e = 179m na= total assets less total liab Q2 discuss emh and how the companys stkhldrs will be affected Q1overtrading with comments

@jayadevsr said: Do anyone remember the question number for mcq that asked share holder total return?? Ques 2?

Yes I think it was question 2. I think I got 5.4%, C

how did you calculate "g" in valuation question, dividend growth model?

Use the formula ke=d0/po since the question is for 20x6 (current)

no need to use root?

Yes because div has just been paid but i could be wrong too. My answer i think is 13.4.?(not sure with the value)

Oh question 3 We had to do matching. I was bit confused in paper and i calculated payment and recipt both by forward rate and money market. Will i get any credit for it?

For the issue of the new 8% redeemable loan note - what did everyone put as the cost of equity? I got really confused here as it did not specify when the new loan note would be redeemed (ie how many years to redemption) Thanks

Q3 money market hedging was the besst technique in both payment and reciept case?

Please tell me about question 3 part a.. was it money market or forward? In both cases i chose money market hedging

wasnt the answer 5? said redeemed at par so wont the value of the shares have to be equal to the bond?

oh my ..why did we have to match? i didnt see anything about matching though

why were you given the forward rate if you had to use matching?

@acca145 said: which answer you guys selected of expectation theory, invert yield, market segmentation mcq

Market segmentation

I also got nov 755 ???? Positive I dont know why Is the paper really easy comparing to other exams?? Unfortunatily i have many mistaked didnt match payment and receipt in hedging quest =[

This forum is so useful. For question 5 I ending up getting a positive NPV as well. From reading these comments i saw my mistake. Instead of calculating 28% of the 400,000 depreciation for tax benefits i added the whole 400,000 in benefits. It probably would have been a short, with all other parts being correct.

there was one mcq for business valuation options were something like for the purpose of listing on stock exchange, share holders taxation etc does anyone remember? one of the option i chose was to calculate share holders' tax other one i don't remember now.

Computing wacc took a lot of time

one mcq which had current NPV of 200 and asked for sensitivity analysis, possible options were: 12.5 10 others i don't remember. It was exactly zero at 12.5 ignoring time value of money, no discount rate or period was given. i chose 10 because i thought if there is any time value involved then it can't be 12.5 so i chose closer to it. i'm not sure. any ideas?

i don't calculate payment And Receipt.done directly money market hedge and forward market calculate...............

I have positive NPV . Is wrong ??? and B I don't know which year to caculation in future ?