Paper P4 Dec 2010 exam was

First vote I took

Did not really do well on first question, was a disaster even though all the questions are the kind I have studied and done before. I had insomia for the whole night without exaggerating and that made my mind became so blurred for the first question.

I know there are some free cash flows calculations for the first question but I did not have the time to do it, same for question two, I know how to exactly calculate PV of the tax relief, tax loss, interest etc on the cheap loan and discount at the same risk of the loan.

By this I have given up about 10 marks approximately, which I think is very very important and will make a difference in my life. (graduation, salary increment, etc.)

it was pure disaster for me. I didn’t expect this, if I could I would rather have written June’s exam, it was way easier compared to this one. Seriously all the questions took me a long time just to read through.

Most of my colleges also feel stuck in Q1 like myself. Honestly, I think that the paper rather bit easy, esp. when comparred to the last ones by Bob. But like every exam, time is always the critical problem. Spend too much on calculations and less time to cover those narrative questions. I miss about ~10 pts, but also not confident about the narrative answers.

Seems that Kaplan tips sent by some guy last night has guessed right in both compulsory questions.

Anyways, finger cross! Until now, just relax and celebrate 😀

A lot was expected from this new examiner, paper should have been reasonable for the first time, buhhhhhh…………………….!

OH my !!! who made this paper, first question on 35 marks? it looks like atleast 50 marks quesition……. cocks n bull story. first section both questions were tough… other question were ok and what was last question, it was a general question…looks like of p3 paper or p1….
anyways unexpected paper …… It should be given loose marking.. other wise … disaster.. ………for me atleast 50/50 for me…..

It was better than last June sitting. I performed well in Q 2-4 and didn’t write anything in Q1. I couldn’t calculate value of the firm, very doubt of income position and cash required. So part 4 was missed.
the rest 3 Q were very time consuming but easy. I didn’t think, just write what I knew and ran out of time.
Don’t want to fail again. How to pass with 3 questions out of 4?

The questions were reasonably fine, except some bits, but it was simply impossibe due to the time!!!! I lost plenty of time reading the questions and had really no time left to answer them although I knew how to do most of it!!!
I really would like to know what a person has to do to pass this exam!
It´s the worst exam I´ve ever taken!!! I won´t get more than 40 marks, so June 2011 for sure!

This was probably a 4 hour paper atleast! Huge amount of reading time with small bits of info everywhere.

I assume Q2 was APV?

It seems that it’s disaster not just to me…Q1, management buy-out, didn’t get it. Q2, couldn’t find Asset Beta for the industry to calculate the right WACC to discount the cash. Q4, negative for Free cash flow to equity–i might get the wrong answer..Q5, looks ok..All questions cost me long time to figure out. Disaster!!

Yes in Q2 use M&M formula to calculate ungeared Ke to discount cash flows. Then add the PV of tax relief less issue cost plus PV of the subsidy to get to APV.