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I was absolutely lost with that the other question too for settlement and factoring.
I only went through it the day before
Section C
Task 1
Calculating:
Divisible and not divisible projects
NPV for unknown project Z
Writing:
Risk, uncertainty and sensitivity analysis,Task 2
Calculating:
Ratios: Interest cover, EPS, Gearing
Debt or equity financing.
Writing:
Problems with high gearing levels,
Islamic alternatives for given financing options.Hi FensiDziubdzius can I ask what you did for the ratios question?
I added the profit from the new project 64m to the current profit of 177 for the ratiosMay I know other than the mandatory $25M invest for project Z , for the remain $45M can divided to project X,A &C to maximum the NPV?
How about the non divided project, $70M can only invest for project Z? I got confused for this situationTsuyoshi10 yes, from my understanding for divisible projects you can allocate as per ranking to maximise npv then if you have a leftover capital you can apportioned to most profitable project, where none divisible projects must only be accepted fully and cannot be split so you allocate by highest ranking at first then you look what you have left and if you can use on any other project even if the ranking isn’t the highes, so you maximise npv. I first used the capital for project z as a must then as per ranking and I was left with 8m capital that I fully used on first project that cost 8m.
Namah1, I just remeber with this question, there was 14 million available and we had 13 million to apportion which gave 0.2mill off the NPV that needed to be deducted from one of the ranked projects. I didn’t include project Z but thinking about it maybe I should have but I’m sure In the question it said not to be included or deducted from the 70M
What was your answers on projects Z npv? I got around 4mill I think. I used the 27% of electric as an inflow and tax as an outflow.
Just need to ask you guys, for the gearing calculations I was blank because I didn’t revise this at all and plotted random numbers, would I get any marks for the recommendations?
Overall this was my resit, I scored 49 in my last one which was a bummer and really don’t want to do a resit again or I’m going to lose it lol.
Hope you guys smashed it!!
i wrote murabaha and ijara , because it was mentioned that there should not be any intervention in management by the finance provider i think , so the sukuk can not be used
Hi Reni,
I had the exact same questions in Sec C! My answer was that factoring and settlement disc were both acceptable,what about you? And yes the second qs was very long compared to the weightage of marks(6 methods was a lot)Hi Junaid98 , I’m pretty sure it stated in the scenario that project z was required due to government regulation and it was meant to be paid from the 70m available, maybe someone else can confirm?
I got 2 something for npv for project z, did you inflated energy costs before calculating 27% savings, and did you put your initial initial investment in year 1 (it was payable at the beginning of “next year” therefore end of year 1). I also included savings from energy as inflows and tax as outflow *no tax payable on initial investment, and discounted by 8%Hi Namha, yes I can confirmed that project Z must be invest due to the government regulations, thus only 45M can be use for the other projects.
For the NPV calculation, I had included the inflation for the electricity and also saved 27% as at the cash flow inflow, but forget count the taxation in…
I feel hard for this exam compare with past year past papers, mock and the practice exam papers…not sure whether I can pass it
Section A & B also hard as well
Thank you tsuyoshi10, I found section a and b hard unfortunately.
Fingers crossed Junaid98, hopefully you’ve scored above 50 this time round. I know how painful failing by one point is, been there!Seems we had a similar set of questions. Similar story here. Part B was mainly guessing… Part C not that bad.. at least as I think right now 😀
I have the same as most of you also, but think I also left out the Z in the allocation, it was a very tricky question, compared to normal NPV, overall I found it quite a difficult paper compared to previous and mock papers. Expecting a long NPV or WACC, felt little pieces of everything no real substance questions. Definitely a repeat for me unless the guesses at the awful A & B questions were on my side. LOL
Did any sit for FM exam today and it was .. I was full prepare unfortunately technical issue happened could sit as it was remote exam.
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