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@vipulv said:
Some of the MCQ i remembered.I chose the lease after tax option.
One of the MCQ i chose market segmentation.
How people did Shareholder return. I think dividend plus 0.32 divide 9.00.
Cost of equity i got 13.4
contraction fiscal policy was high tax n supply
Sales – varable 4000 minus 2000 / by NPV got 10 per cent answer.
Cos for the payable day ques was A 730 000 something
For the effectivness i chose C D
For the financial management i chose 2 only as option. Not cash flow but they do plan funding.
hi
my answers were more or less same, though i didn’t choose market segmentation as reason for invert yield curve, i chose because short term interest rates are higher than long term rates, something like that.
There was one mcq asking about what is included in net working capital
two options were very similar but one had loan notes maturing was this the right one.
also for q5 part a)
I got positive NPV. Did anyone else get positive.
@vipulv said:
Share price n sumthing else i chose.i chose share price and divident payment……….
I found this MCQ question so weird thus I had to memorise it. I don’t remember what question number it was but it goes like ” Fad co is entering into a sale and repurchase agreement on the money market. The co has agreed to sell $10m of trial balance for $9.60m and will buy them back in 50 days time for $9.65m . Assume 365 days. What is the implicit annual interest rate.
(A) 0.50%
(B) 0.52%
(C) 3.65%
(D) 3.80%There was another mcq about interest rate parity. The interest rates for 1st and 2nd years. 3% then 4% in one country, 2 or smth else I don’t remember exactly. How did you calculate that and is there anyone else who remembered this?
I got the same as dayoxo. I keep panicking that as the questions were quite straight forward that I didn’t put enough information down to gain all the marks. I pray I passed
@ azaramirov: That question got me confused as well. In the end, i have calculated the rate for Y1 using the given interest rates and spot rate, then, using the rate i got i calculated the rate for year 2.
I got 3.8 too. What did people get for NPV first part? I did sales ninus cost got contrihution x by probabilties. 18450.
My final NPV was negative (137) anyone else got this?
@Gia, I also tried to find year by year, then as I could not find an appropriate answer I just added both figures then discounted. Like, if there are 2% for the 1st year, and 3% for the second, I just discounted the figure with 1,05 . I think it was wrong, athough there was an exact answer
I found the forward rate for the current year and assumed it to be the spot rate for the first year and calculated the forward rate for the second year from that.
Q5 NPV- My approach was: First the question states that for each year there are expected probabilities relating to the 3 types of the product.
So for each year I used the percentage given (expected values) to calculate the type of goods and then calcutated the sales and conversion costs that relate to that specific good.
The Fixed cost was easy, I just used the range of sales unit and used the relevant fixed costs.
NPV in part a was negative so I would reject the project.
NPV into the future with sales being at 450 units which was the same as year 4. In this case all I did was take the same Cash flow after tax as year 4 and just used rhe year 5 Discount factor which made the NPV positive. Therefore accept the project.
It was going well until I got to Q3, which I had left to last. Then I had a major mind-blank out of nowhere and completely forgot how to do a money-market hedge and about the types of exchange rate risks. So now my best hope is to get 50 marks out of 90. I don’t get it, I revised it so much, but then just completely flaked out on the question!
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Exam question paper is out, but I find a few questions seems bit different:
https://www.accaglobal.com/content/dam/ACCA_Global/Students/fun/f9/Exam%20docs/j16_hybrid_f9_q.pdfNo depreciation should be in NPV calculation, just minus initial investments, that is why NPV >0
Hi,
I too have straggled with this paper for sometime but hope to clear this time round.@vipulv said:
It was irredable debt 8 per cent you had to use. Not repayable so you do not tax 8 per cent by .75 that is what i seen every where. So i did 16000/ 438 000 sumthing divide by 8% for wacc bit.@tayyabom said:
himy answers were more or less same, though i didn’t choose market segmentation as reason for invert yield curve, i chose because short term interest rates are higher than long term rates, something like that.
wasnt the answer government raising short term interest rates?
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