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50 marks was ok, NPV of investment and cash flow forgone for parent company.
25 marks was analysis of financial position and statement of profit and loss-easy but too much time takes to do all calculations, valuation-25 marks-I found it very hard. Cash flow to firm-but I think I never practiced like this before. I am with a feeling that I will sit it one more time 🙁Yes I had the same.
Did well in Q1 which was ok.
Q2 was so much information and didn’t go the best
Q3 did okay
Mine was tough – q1 was a combination of valuation of debt, equity and capital, but using yield curves etc made it really tricky, then it moved into hedging using futures and a swap which was time pressured. Commentary sections were good tbf. Q2 was a bit different regarding calculating expected dividend using geometric averages and other info and then a detailed evaluation of dividend capacity. The final question was an absolutely awful business valuation. Couldn’t understand the requirement so will have scored very few marks for basic calculations but hopefully some OFR marks for then commentary and professional skills. Overall borderline … you know it’s tough when you look for your preferred question to ease into the exam … and there it’s not one !!!!
Mine was tough – q1 was a combination of valuation of debt, equity and capital, but using yield curves etc made it really tricky, then it moved into hedging using futures and a swap which was time pressured. Commentary sections were good tbf. Q2 was a bit different regarding calculating expected dividend using geometric averages and other info and then a detailed evaluation of dividend capacity. The final question was an absolutely awful business valuation. Couldn’t understand the requirement so will have scored very few marks for basic calculations but hopefully some OFR marks for then commentary and professional skills. Overall borderline … you know it’s tough when you look for your preferred question to ease into the exam … and there it’s not one !!!!
I thought the NPV question was so chaotic with the information provided – my answer was as chaotic but recognised the forgone sales but in the end I had so much negative cashflows I had nothing to apply to my 8% tax rate at the end with the bi lateral agreement – I know I messed up something but kept swimming- at this point was 1hr in with all the commentary left to go on Q1 – when I finished -(had to leave c and B part finished) I did wander if anyone managed to finish everything in the time given or if I was just struggling. Definitely was really tough Q1. by Q2 I was ready to tap out tbh. Q2 was so open on requirements it was a bit disheartening= got the trains. comparing the competitor etc and performance
I agree jayhelena- felt it was very chaotic, much more so than any of the practice papers! I found the whole paper challenging- thank goodness for the discursive train one. I think I picked up the majority of my marks there. Don’t think I will have passed this one!
I agree jayhelena- felt it was very chaotic, much more so than any of the practice papers! I found the whole paper challenging- thank goodness for the discursive train one. I think I picked up the majority of my marks there. Don’t think I will have passed this one!
Well done for not panicking and giving most of it a go. It really is a time pressured exam, and as much about trying to understand all the info and what’s needed. I really felt worried when I looked at all three question requirements and the amount of info. I just hope I pick up the professional marks and did enough on the first two questions to get me over the line with a part answered q3. Best of luck.
What ab m& a question, there was no share for share and no cash offer. Did u get question on why acquisition should not be done?
@Robert , was your exam 11am BST time?
Q1 was about related with 10 marks of calculation of cost of debt, equity and wacc with given credit spreads.
10marks were future hedge for investment and loan for swap
the rest was discussion.
I think yes q1 was good and i did okay.
Q2 was about acquistion with share to share offer which the company have high gearing. Additional value created wanted to divided as 70/30 – it was also okay – but they also want that mezzanine loan for cash offer, i messed up there. I did some discussion and calculations but not sure how it was
Q3 was dividend capacity but so complex and hard to define :/
no npv or apv or good hedging :/ Like nightmare
Fingers crossed we do ok :3 important thing is that we did what we could and kept going through it 🙂
There was no question on project appraisal in my exam. I thought it this was one of the topics that had to be included, along with risk management. Part A was a question on the cost of debt, equity and capital followed by a hedge and a swap, which was OK. The section B questions were atrocious. Dividend capacity and some random information about a potential acquisition. Appalling. Mezzanine finance? Pull the other one. But no NPV or APV question. I don’t get it. A disaster.
You had the same paper as me … I tink the cost of debt, equity and capital would be deemed the investment appraisal element … but I think that’s poor and it’s should be fully tested as indicated with a full question.
I made some good points about mezzanine finance and these were well explained, except for they were not specific to the scenario which I didn’t understand. Hopefully I will pick up some prof skills marks and commentary marks and maybe a few basic calc marks but I gave up on those and just used assumed amounts after a certain amount of time …. Felt disheartening but probably the right technique
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