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

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

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 20×5 and 70 days in 20×4

Current assets/ current liabilities was ….can’t remember
Acid test was 0.47 in 20×5 and 0.48 in 20×4
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.

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

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

no need to use root?

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?

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

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

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

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 =[

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.

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?