*** P5 December 2015 Exam was.. Instant Poll and comments ***

Same, don’t think it went well at all, flunked on the EVA calculation and was horrendously time pressured – chose questions 3 & 4 as I felt they were the “easiest” but when pen came to paper it was a lot more difficult than expected.

How did everyone else find it?

Massively time pressured, each requirement seemed to have two to three parts to it!

Q4 seemed ok until you started working on it

I liked Q3

Totally agree. Q3 was ok, all the others – awful. I tried several times to understand what is required and how to interpret the scenario, but still think that I did not answer the questions. Dissatisfied(((

difficult paper

@mo993 said:
Same, don’t think it went well at all, flunked on the EVA calculation and was horrendously time pressured – chose questions 3 & 4 as I felt they were the “easiest” but when pen came to paper it was a lot more difficult than expected.

How did everyone else find it?

I also was a bit confused with EVA calculation. Recalculated EVA was higher than it was calculated by junior. I got 257 or sth like this

@n.nadiradze said:
Complete disaster 🙁 I attempted q2 and q3. But still think every question was horrible

I also attempted Q2 and Q3. But Q2 was the most awful question I have ever met(

What a disaster…going into the exam,I told myself I will ignore transfer price if it comes in optional questions and that’s what I did.

I did Q 3 and 4…(I passed question 1 and 3)

But 10 minutes into question 4,I realized I had zero idea what was required…I spent another 5 minutes trying to unpack it but NO..

Then I started warming up to transfer pricing with only 25 min to go..

I ended up just cleaning up Q 1 and 3 as I had no idea what was required in q4.
wish I had chosen the transfer price question because I could have at least got 7 marks..but I realized that too late in the exam

Oh ..what al disaster indeed..

@agrigoryan said:
The same feeling. I wrote a lot, but I guess most of it was meaningless(

I got $221 on EVA but the easy marks where in picking out what was wrong and what was right as you were asked to evaluate.whatever the correct Eva ..highly unlikely to get 15 out of 15 but very likely to get over 10 marks for pointing out what was wrong and what was right.

@flexi said:
I got $221 on EVA but the easy marks where in picking out what was wrong and what was right as you were asked to evaluate.whatever the correct Eva ..highly unlikely to get 15 out of 15 but very likely to get over 10 marks for pointing out what was wrong and what was right.

From my most odd comments re EVA were:

– R&D should have been adjusted to Profit and also included in capital employed
– Capital employed opening balance should have been taken
-Inconsistency between operating lease;40, while in capital employed 115, given 4 years-I think I was mistaken here
– Post-tax interest charge was not added back
– in calculation of WACC post-tax cost of debt whould have been taken, which gave 4.7%
– some comments about economic depreciation and replacement costs of assets, although there was no info in the question
-also discussed other assumptions used in teh calculation

– in calculation of WACC post-tax cost of debt whould have been taken, which gave 4.7%
– some comments about economic depreciation and replacement costs of assets, although there was no info in the question
-also discussed other assumptions used in teh calculation

Yes another interesting one was the gearing..in the assumptions it said 100% but in the calculation they used 50:50…so I went with the 50:50 as it made sense and do the tax adjustment on the cost of debt which was not done in the question

@seagoat said:

@flexi

I also assumed 50:50 was ok and moved on although not sure if correct..

It’s a correct assumption though..I’m sure they will mark it as correct on that one

Did anyone get negative EVA after assuming 100% debt to equity means multiplying by 100% as opposed to 50%? Or have i got this horribly wrong and love marks for having a much lower recalculated EVA?