FM*** March 2022 ACCA FM exam – Instant Poll and comments ***

It was good

Section C: 1. Factoring with recourse and early payment discount offered to customer. 2. NPV, IRR, payback period and ROCE. (without taxation) No WACC, no EOQ, no Baumol model, no Miller-Orr...

Mine was the same.

Section C was analysis of 2 options, option 1 was factoring and the effect it has on investment, option 2 was Miller method and a ton of theory questions about Miller method Other section C was NPV with probability alongside a theory question about risk and uncertainty Could've been easier and it could've been harder....

Zak97 wrote:Section C was analysis of 2 options, option 1 was factoring and the effect it has on investment, option 2 was Miller method and a ton of theory questions about Miller method

Was option 1 factoring or just early settlement discount offer? I don't remember a factor being mentioned

Mine was early discount. Different paper types. Was your NPV in the second theory question positive or negative ?

GraceOla wrote:

Zak97 wrote:Section C was analysis of 2 options, option 1 was factoring and the effect it has on investment, option 2 was Miller method and a ton of theory questions about Miller method

guys had a question in sec C "Helbac or Hebac" something like that... Where the questions were of Early settlement discount + Miller orr model (spread upper/lower limit). If yes, can you tell what were the 2 theory questions of it. I think i have missed one. Can't remember.

Anyone that has an answer to any of these Q's please respond. 1)While calculating payback period, did you guys use the discounted payback period or the normal payback period? 2)what did you guys get for the ROCE 3)in that MCQ question relating to strong and semi strong market efficiency, in which 2 projects with positive NPV's were given, where in the directors were going to announce the projects in the next day and fund them with retained earnings.. ,,,what was the answer? The options were 6%, 6.05 , 6.25 and something else that i cant remember now. What's the correlation?

This was my paper type.

nmenon3 wrote:Had sec c question on calculating npv, though i have a doubt in the administration cost, it was given central cost apportioned to the project. Do we take that? Soft and hard capital rationing<br>Debt and equity finance and find the respective ratios.<br>Then a directors suggestion and response to that question

When is the exam results?

Yes, I got negative NPV and hence the project was not financially acceptable.

nmenon3 wrote:What did you take the administration cost? Did you get a negative npv?

I used the borrowing rate. Did you get a question on whether interest rate options are payable immediately?

nmenon3 wrote:There was a question on finding the future spot rate with interest rates of borrowing and deposit given..which one do we consider

Hi all, I tested positive on Friday morning and I couldn't attend the exam. I did AAA exam on Monday and I have the docket with me. Do you think this is a valid reason to get a refund and have the exam on June?

In sec C i got: 31 (i) Npv calculation in nominal rate (ii) Npv calculation in real rate ( i forgot to deflate the values) pfff (iii) conflict of stakeholders objectives 32 (i) calculation of interest cover ratio, gearing, EPS (ii)comments on these calculations. (iii) gearing definition (iv) 2 sources of islamic finance where profits are not shared In sec A n B: Mostly Foreign Exchange risk, interest rate risk.. Very confusing! Feel like i i got lost in every ques! ANY1 get similar like me? I Failedddddd ?

yup, i got the same set, it was really bad for me aswell.

Will we fail?

lets hope not.

Feel like so.. Acca does not crack jokes n like eating marks ?

nmenon3 wrote:Yes I did

what was your answer

Did anyone have a question where it asked for the total value of one company based on the P/E of the second? Market value of second company 3875.00 Eps 0.75 First company 100 m 0.50 nominal value shares with profits of 55 m and dividends of 20 million. I was quite stuck at that question not sure about the answer.

Got this question too! so glad others got a negative too! Found section B really hard and then a 7 marker in c about ROE on raising $18m rights issue and loan. got stuck

Lot of theory in section a and b which required deep knowledge of the text and technical articles but overall it was good and section c was really good too with npv and early discount and factoring question:)

agboolakenny84 wrote:Mine was early discount. Different paper types. Was your NPV in the second theory question positive or negative ?

I got a positive NPV. Did you use the entire fixed costs amount ($45m) or just the incremental ($6m)?

Very bad set it was

What answer did you get for early settlement and devt factoring

? got Positive NPV ,why you guys reached to negative ? Does anyone remember whole question ? I got positive npv and calculated IRR,PAYBACK, ARR based on CFs of NPV which i considered inflation on sales , variable ,fixed cost , investment and residual value .What else calculations you made and reached to negative ? If it should be negative ,then all my calculations will be nil ?

First i took only factoring option favorable ,then i saw that in settlement discount it says that bad debts fell by 5 % which i didn't considered in my settlement discount calculations.After corecting it i reached to conclusion that both options are favorable

I took discounted payback ,but i think i made mistake it was asking just payback period

I got positive NPV too but I did the working capital the wrong way round - included it as inflow in Y0 and as negative in Y3…. I also only included fixed costs of 6m every year (not sure that’s correct), which resulted in operating loss in Y3 and hence no tax on profit, which threw me and I think I’ve done something wrong….. Has anyone got that?

I got positive NPV too but I did the working capital the wrong way round – included it as inflow in Y0 and as negative in Y3…. I also only included fixed costs of 6m every year (not sure that’s correct), which resulted in operating loss in Y3 and hence no tax on profit, which threw me and I think I’ve done something wrong….. Has anyone got that?