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I am not going to pass, i am so tired of ACCA now.
I regret now that i started from Q1, which was ok, but impossible to do in the time given and becasue of that I didn´t have time anymore to attempt Q5 :(((
It was really tough paper, how can they really check our knowledge giving us so little time????
I´m also tired of ACCA….. what a waste of time it was the whole preparation for this exam…- Topics: 0
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All I did was just try to achieve first 50 marks.. i was like doind part a of q1 then one part of q3 ,q4 half ,q2 one part then again went back.. it was like i m doing all four questions together.. little bit tricky.. n tougher than last 2 attempts… bt i hope i can manage pass marks InshaLLAH!
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Ok, am still in shock! What was that? My first attempt at P4 and I get this very rude shock? Never sat an exam before and come out feeling so sure that I was going to fail it! P4 did that magic today!
Am so sad cos I gave it so much! Still got 3 to go, now I can barely concentrate to read!- Topics: 0
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distater simply!!
Q2 was impossible, wat was the spot price 4 months later?….cudnt do anything in it without that
Q4 was ok
Q5 wtf!….still wrote a bit lets see…..
Q1 was tricky but i think i did it somewhat…
failing it 🙁Gosh that was hard work. I didn’t feel totally prepared going in but wasn’t expecting this level of time pressure. I really can’t see how Q1 could be done in the time.
Fortunately did Q4 and Q5 first, so hope to pick up a few marks on those.
Ran out of time on 2c which was a shame as probably easier marks than some of Q1.
My valuation for the acquisition was less than the $20 million that they had in reserves! Not good, had to make an estimate of $30 million in order to progress with the debt part. Ah well I had a stab. Hopefully will get some marks for working out the cost of equity, WACC etc.
Q.1> WACC 11% for Fodder and WACC 9% for Combined firm….. that was lengthy calcution than rest of the requirments for not that much tough if one have basic knowledge of acquisition and Capital Structure matters.
Q.2> Main issue was Future Spot rate after 4 months which is tricky rest was normal calculation……….
Q.3.Duration calculation by using formula……
1+y/y (1+y)+t(c-y)/c(1+y)wholepower t – 1 + y
where
c=coupon rate
y=yield to maturity (Which is to be calculated)
t= time to maturity ( 5 yrs)So easy 9 marks if u know the formula
Q.4 Pe=35 Pa=35.7 (PV of Cashflows) than discussion blah blah blah……..
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Pa was 48. Pe was 49
I dont quite remember my values, but ya even my Pa and Pe were in 40s…I guess 43. something and 41. something million; value of option was I guess around 8 point something.
And question 2 was very easy, you just had to calculate the lockin rate. Subtract from the futures rate today’s spot. This difference would have closed down in 5 months, and it was actually 0.0080. At the end of the 4th month (this is when you will be selling your $ receipt), your REMAINING difference would be 0.0080/5 which is equal to 0.0030 if I am not mistaken. Just deduct this from today’s future’s price and you will be get the lockin rate, which would be your effective rate of transaction at the end of the 4th month.
Forward was your best option though; it gave you the most receipts. Then part b wasn’t tough once you knew on which rate to transact at (which was forward rate).
C seemed easy but I ran out of time. I left 30 maarkkssss and i KNEW the answers…I just wish they would give us like 30 mins more! Its humanly impossible to complete the paper AND get it right in such a tight time frame :'(
And I am not sure, but I recall my cost of capital for Fodder was 10.5%. Anyone here agrees?
Of course, the cost of capital for the combined company would depend on your valuation of fodder, we had to weight the beta alpha according to market capitalization, then progress towards calculating the combined Beta equity, moving on to CAPM, and then moving on to WACC calculation, where we would be borrowing at 6.4% (combined company).
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Anyone noticed that instead of a separate Investment Appraisal ques he brought Inv App in each of the first 4 qus??
I knew the acquisition ques would be tough so I did not try that first. I attempted in the following order:
Q4 – Real Options – Pe: PV of (7 + 7 + 35) is that right? Pa was the PV of +ve cash flows?
Q3 – I initially thought I did this ok but after reading the comments I realised I completely messed up the Currency Future part. I think I got confused with Int Rate futures lol And I didn’t get a result for the hedge cause I wasn’t seeing info to work out the Fut Spot and Fut Fut price.
Q1 – I worked out value for Fodder, value for combined but then nothing… I got kinda lost and at that point I realised I was running out of time so I moved onto next qus. So 15+ marks lost there….
Q3 – duration. I only had time enough to work out for Bond1 – I got 4.6 years?? Something like that. But I think I failed it overall.
So I dunno. The main question is, do I try again in December or move onto Audit?? ugh kill me now…@authentichero said:
I am not going to pass, i am so tired of ACCA now.P4 made me so demotivated for the last 3 sittings, the first time being my closest to a pass at 46 (Dec 09). I simply switched to P7 this sitting, it was time pressured but it wasnt so bad. I’m hoping to pass. I suggest if you have given up on ACCA altogether bcuz of P4….P7 is the way to go. Just saying…dont give up 🙂
Q2 spoilt my day. Got confused so messed up. It carried alot of weight together with q1. did not practiced enough on the futures & options otherwise things would have been ok. Lecture in op tuition was very helpful. I discovered open tuition so late. I don’t know whether I will pass or not but a little bit confident than in the previous sitting.
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Hi Everybody,
I thought this paper, by far, was the hardest I have sat. We were asked to do so much in the amount of time we had, and I am among many that didn’t manage to finish…
Q1 – How much did you all get for the valuation? I think mine was around 40m and the value of the combimed company came out at something like 180m… Which seemed rediculously high!
For the bond question, I couldn’t really remember what to do with it but that’s the Q I ran out of time on and so only magnaged to calculate the yeild at 5%.
I found Q2 OK…
Q4, was OK doing the formula, but not sure I got the inputs right. I got 14 for Pe and about 28 for Pa, what did you all get?
I’m feeling pretty demotivated after that, but lets just enjoy the summer 🙂try to show ur efforts in Compulsory questions and attempt complusory questions first . what our teachers says is that those who attempt compulsory question complete and well answered even with 15 to 20 marks left in other optional questions have more chances to get pass as compare to who leave question 1 i.e compulsory for the last moment and unanswered.
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I really don’t like this examiner he is showing off his analytical knowledge too much and use this opportunity to show off. His style is so lengthy and so unnecessarily detailed. The question 2 is so unfair that if you can’t get (a) answered the rest will be shit.
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I think in the question 2 Pa was the present value of the the cash inflow from period 3 to period 6 as the inflow was going to start from year 3. Pe was the first two years investment and the production cost that they are planning to delay.
Q1 was really time consuming. I dont know how can you perform both calculations in 17 marks question timezone. You cant leave it half way as you cant answer other bits without having to know how much is the value of the equity of the company to know how much debt finance will require to fund the purchase etc.
Q4 was alright as it was purely based on simple calculations with no much tricks except the currency swap part which required bit of thinking. I will appreciate if some videos are uploaded for the same. Unfortunately didnt have much time to organise the answer properly as Q1 and Q2 were time consuming.
I wanted to write so much for this question but again no time. Pointed out main issues and couple of ways to handle them. Couldnt write the directors remuneration because not much time left to read question second time and pick all the bits.
Overall, I am not sure about the result but any paper at professional level cant be easier than this one.
Good luck everybody!!!!
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i dnt think so that paper was that difficult . although underperformed .. q2 -was straight forward if you have studied foreign currency hedging … Q4 and Q5 were so easy .. Q1 was lengthy .. so i attempted it last .. theory was easy in question 1 so you could have gained easy marks there .. part a of q1 was very lengthy for the allocated marks .. but still passing marks could have been achieved at this part also .. for people doing question 1 first for them it would had been a challenge coz most problably they would had run overtime and then messing up in other questions to ..
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The question 1 was a disaster
otherwise it was ok but spend too many time on quest 1 that could complete the paper 🙁
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The exam was fairly easy
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Pe should be calculated as we calculate value of zero coupon debt.. i did in the same way.. discounted the outflows n found the terminal value at 2nd yr.. dont know whether it was right:s
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I dont think one should try to ‘complete’ question straightaway.. it is rather impossible that u know every bit of every question.. i attempted question 1 firstly but only those parts which i can attempt in the short time possible.. its not about COMPLETINg the question. u have 100 marks all you have to do is to grab them by hook or by crook.. i learned this over my last 2 attempts.
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