AFM*** P4 June 2012 Exam was … Comments and Instant Poll ***

Hey Guys, how was the exams? can you guys give a break down of how the exam was in terms of question numbers and the topics came and the order in which u tackle them.....

Can somebody share the topics please.

It was horrible in my opinion. I did question 4,5,2,1. in that sequence.

wat were d ques like debrabbit??

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 c

Q2
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 remember

Impact of these proposals on forecast financial statements

Securitisation

Q3
Swap
other factors to consider before repayment of debt using equity

Q4
IRR/MIRR
Value at risk

It's not complete. Can't remember that much

whats topics came up and in terms of questions number....

P4 is definitely the hardest paper around

Q1 - Mergers and Acq (FCF)
Q2- something to do with debt borrowing
Q4 - Risk adjusted WACC
Q5 - Risk of subsidiary in a foreign place.

and they asked Dark Pool finance. I have no idea what it is. T.T

this is based on what I remember. not quite sure though. seems easy but its not. GAH.

tnx a million guys very helpful!!!

Question is simple but there are a lot of time wasting traps like calculating the IRR and also you got to have deep understanding of the subject.

Nothing on European Debt crisis?

I am going to die ...i choose the. Wrong question .its the forth time really want to die

This was my third time and it was just as nasty as the last two attempts. Absolute torture.

Too much time pressure and it's impossible to revise everything that may appear as there are no typical questions!

@satsi

No, nothing on the European Debt Crisis

this is simply a disaster...cant really answer all the questions..so tricky..i expect the hedging techniques like forward, futures and options and none are appear..dying..

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...

Not typical past year questions. Expected currency/interest rate futures/options but didn't come out.

This was more than a disaster, even the European Debt crisis does not compare! Looking back, the paper is doable but he just keeps twisting everything around, making you really search for what he really wants. Hey dude! We really don't have that kind of time in the exam hall! Arggggggggghhhhh

every thing that ws expected didnt come.not even a single word on euroepn debt crises

I just thought it was weird and nothing was just normal it had so many twists and turns

Absolute disaster!! this was my first try. Agree with Blackbeauty, just way too confusing. Looking back at the past papers, I preferred Bob Ryan's approach, he seemed more direct and straight to the point.
Was expecting to see more of Euopean debt crisis come into the exam but nothing! I mean, before Dec'11 exam examiner releases an article on interest rate hedging and one on bonds, and they both appear in Dec'11 as separate questions!
This time round he releases article on european debt crisis and its not in the exam!

Dark pool trading saw it LSBF notes but coulg not really explain it its a pity , paper too tricky easy at first sight but tricksome as you go ,

a clear plan to fail everybody or being tortured ,i am fed up of dealing with p4

@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.

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.

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!

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.

:)

Paper was total disaster for me
Q1 was very difficult