AFM*** September 2022 ACCA AFM exam – Instant Poll and comments ***

No actually my rate was 14% for base case and I used risk free rate for financing CF. What did you do for working capital?

Zaid it was not part of report

Okay okay, by mistake I included that also in the report. I hope that they do not neglect that part

My paper Q1 50 marks 1. NPV of project a 2. Npv of project B before offer from another company b. NPV of project B after offer from another company 3. evaluate and discuss financial assumptions and which project they should pick before BOD concerns 4. discuss and explain BOD concerns and how company should proceed Q2 25 marks 1. calculate before acq value of 2 companies (5 marks) 2. calculate and discuss value of combined company (5 marks) 3. evaluate whether company b will accept offer why company a (3 marks) 4.what factors competitions authority consider when deciding on company a's acq (7 marks) Q3 25 Marks 1. multilateral netting and briefly discuss main advantage (9 marks) 2. MMH and Forward (4 marks) 3. explain how centralised treasury will help with companys cost cutting strategy, and the advantages of a decentralised treasury function to help with the issues the company is facing (7 marks)

Pratick , in question 3 it was about how would treasury deparment would have positive impact and cost cutting to the company

In part b anyone what have you discuused about possible actions,other possible actions and recommendation?

@mustafatariq I didn’t release back the working capital in the 4th year, as it was a 10 year horizon. I just added the inflated impact. Also did you inflated the post tax cashflows of 55m$?

It was part of the report.

Mustafatariq21 wrote:Zaid it was not part of report

Was working capital meant to be inflated? In my variant it was requested to include the working capital for a percentage of revenue.

farahhh wrote:@mustafatariq I didn’t release back the working capital in the 4th year, as it was a 10 year horizon. I just added the inflated impact. Also did you inflated the post tax cashflows of 55m$?

was the 50 mark question tough ?

Guys, I just wanted to confirm that for the money hedge question the investing rate was 2.1%. I was just thinking about it now and I think I might have picked the wrong rate.

In my too. It was 10% of revenue. I think I missed the part when they said you did not have to release it back on the fourth year. Someone mentioned that they said it should not have been released.

I remember seeing 2.1%. Since it was a payment , you deposit first and then borrow. the 2 rates used were 2.1% and 2.2% if i remember correctly

jaiyecoker wrote:In my too. It was 10% of revenue. I think I missed the part when they said you did not have to release it back on the fourth year.

Yes the question said do not release it back

The APV question in AFM paper is much similar to Amberle Co. question in Kaplan Kit.