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Hello sir.
In question 54 (c)(i), the question asked to find the value of Fashoro.
As the line that said ‘they value equity using FCFF method’ is in the last line of the question, I actually missed this important information.
As a result, I somehow calculated something that’s not FCFF (which is an important piece of information).
However, I got all calculations steps afterwards correct, except the fact that my FCFF value is wrong.I would like to ask in such cases, how many marks do I possibly lose? Do I just lose the FCFF marks and that wrong will be carry forward?
Thank you in advance!
You do not lose marks twice for the same mistake. If you make a mistake and then do the following calculations correctly then the later calculations will get full marks (even though you are applying them to the wrong figure).
In that case, what about if a candidate got a scenario completely wrong?
For instance in risk management, what if the candidate mistook a company to be receiving foreign currency funds when the question asks for paying foreign currency funds?
This will meant they got all the prices for buying and selling currency wrong.They would probably get some marks for being able to convert. Overall it depends what else was in the question. If, for example, it involved illustrating the use of futures then they would get some marks for showing that they understood how futures work even if they were using the wrong figures.
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