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@garrick1986 said:
The weighted average question on qn 4 take a lot of time…. hmmm got 5 minute for VAR so just guess based on BPP textbook…. hopefully can pass… no currency at all this round…I agree the weighted COC took time the rest was manageable to most extent. Do you remember what equity beta was used for the ke of the new project and what was the final WACC.
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The first question made absolutely no sense to me. I couldn’t understand what was I supposed to do for the percentage increase in both company’s share prices. Other than that there were some easy marks for the BSOP and assumptions.
The remaining questions were quite fair and straightforward. The last question kind of had a European crisis type situation factored into it. This exam is all about application, you can’t expect any direct questions.- Topics: 0
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To be honest, no time pressure at all… Because I don’t even know where to start in question 1! Hopefully my BSOP and FCF get some marks, doubt i will squeeze 10 marks from question mark out of the possible 35!
The rest was not that hard, and to those of you who said there were no European debt crisis at all, it was quietly sitting in question number 5. Overall still a disaster to me simply because of question 1!
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Paper was easy but lengthy… it was not a typical P4 like Paper. Bob Ryan must be laughing on Shishir Maldey. I attempted 90% and hoping to pass and I pray that everyone who did a justifiable effort may succeed . AMEEN
@eugeneksc said:
To be honest, no time pressure at all… Because I don’t even know where to start in question 1! Hopefully my BSOP and FCF get some marks, doubt i will squeeze 10 marks from question mark out of the possible 35!The rest was not that hard, and to those of you who said there were no European debt crisis at all, it was quietly sitting in question number 5. Overall still a disaster to me simply because of question 1!
But question 5 was not about european debt crisis. It had one sentence saying the country for the potential subsidiary suffered from a debt crisis. The question was about identifying the risks in the case and discuss how they can be mitigated, so there were other more important risks in the question which could be mitigated against.
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🙂
From the comments, the way I felt and friends feedback I can easily see the pass rate drop to 25 %. if not lower…
My first attempt and… wow! Haha, that sort of thing should be illegal.
Utter madness.
@deanogerrard said:
But question 5 was not about european debt crisis. It had one sentence saying the country for the potential subsidiary suffered from a debt crisis. The question was about identifying the risks in the case and discuss how they can be mitigated, so there were other more important risks in the question which could be mitigated against.I second you deanogerrard,
Q.5 was not about European debt crisis it was just a company, where it was located(Losania) was facing economic crisis.- Topics: 0
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Well it was a company preparing to enter a country which is facing something similar to the European debt crisis. Think about the possible interest rate hike to curb high inflation, banks who’re not willing to lend etc.
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what a disaster, found this subject hard to study even though i passed my F9 on first attempt. anyway i had a feeling i will fail even before i sat down to it! Spend loads of time studying and it seems like i waste. i kept getting so confused and could not understand what the examiner is actually wanting of me. Towards the end my mind actually went so blank that i could not remeber the simplest formulas like IRR so i made up my own formulas and definitions! what a nightmare sitting! good luck to you all guys!
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Anyone of you guy answers the part ii of question 1 using P/E. I can not think of anything else besides P/E :((. This part is really disasterous !!!
takamori said 4 hours, 1 minute ago:
Q1:
a. FCFF
b. Percentage changes in share price as a result of acquisition
c. Percentage changes of an extended project (Black Scholes Model)
d. Likely reaction of both companies and discussion on assumptions made in part cQ2
Consist of 3 proposals
Proposal 1
Further borrow 2m and share buy back
Proposal 2
Further borrow 2m and invest in NCA
Proposal 3
Can’t rememberImpact of these proposals on forecast financial statements
Securitisation
Q3
Swap
other factors to consider before repayment of debt using equityQ4
IRR/MIRR
Value at riskIt’s not complete. Can’t remember that much
WOW! What a great memory!
Q2, Propposal 3 was about selling some production assets (cease some activities) and spend the money on expanding of some other activities without spending of fixed assetsaasthag said 1 hour, 7 minutes ago:
The first question made absolutely no sense to me. I couldn’t understand what was I supposed to do for the percentage increase in both company’s share prices.The same for me. I wrote something just not to leave free space
@eugeneksc said:
Well it was a company preparing to enter a country which is facing something similar to the European debt crisis. Think about the possible interest rate hike to curb high inflation, banks who’re not willing to lend etc.I can understand what your saying mate, but to me the debt crisis was one of many risk factors that could be discussed. I actually found the scenario quite contradictory because it was saying the country was suffering from a debt crisis but also inflation was high and employment was high which would be signs of prosperity not austerity.
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Question 1 is quite difficult…but managed to do the FCF and option and bit and pieces hopefully could get some marks (maybe 1 or 2) extra)
question 2 was ok
I did 4,5: didn’t expect interest rate swap coming skipped that question; npv and irr are ok but can’t do value at risk; not very structured answer on question was running out of time to think about point but yea I think FX hedging was hidden there when the last paragraph mentioned ‘minimise exchange rate exposure’, so there is still a tiny fx element
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It would be great if anyone would share his answers for question 1 especially what was the share price?
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the girl sitting diagonally in front of me used 3 booklets. madness. I didn’t even manage to complete one.
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The value at risk question…
NPV per annum = 2,200,000
Standard deviation per annum = 800,000Question: Given a confidence level of 99%, find VaR for a one year period and five years period. Briefly explain what it means.
My answer:
1 year = 1,864,000
5 year = 4,168,031greater than the NPV, lol at my answer!
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This was the first time I ever wanted to just cry at the question paper in the exam hall! The main problem was Q1, it was too complicated thus too much time was spent trying to comprehend the question, and ofcourse then not much time was left for the other questions. I was happy with Q4 though.
I just cannot accept the fact that all the effort I put in for the past five months could have been nothing but a waste, and I am talking full sat and sun classes after five days of work.. and studying every night after work, going to work like a zombie the next morn!
ACCA examiners need to understand that we do not have enough time to dig out information buried in between their words or to think for anything longer than a minute for one question! The time constrain is just ridiculous! Only when they set questions based on our time constrain will we be able to tackle the paper. I don’t know of even one student who has ever said that three hours was perfectly sufficient! So, why is it that the examiners just don’t seem to care! Perhaps it’s true that all ACCA cares about is money.
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I hope the examiner actually reads the feedback most students on here give. I have got a Maths degree and have sat all the papers of ACCA and passed all of the rest.
This is now the 3rd time I have sat P4 and yet again the questions are completely different to anything I have ever seen. After receiving tuition, a revision refreshers course and revising for months I am just left deflated.
I can understand questions having to be different. Of course they should. They are in every other paper I have ever sat.
However the way the questions are asked in this exam are so vague and complicated it is untrue. Bob Ryan may have been more difficult mathematically. But at least you knew where to start. 3 and a quarter hours is not enough time for this exam. 3 and a half days and a bit of luck, I might have had a chance.
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