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I’m a bit worried, because I actually feel like I did pretty well which I usually don’t feel and pass.
time for 6 weeks of waiting!
Did anyone get the Section C NPV and Loan notes/Rights issue set? What was your NPV? Mine was $551,280. For the later one, i don’t remember the exact figures for revised EPS, Gearing but I recommended rights issue financing. I felt like the writing questions were too similar to past paper questions, I think did quite well in that. How was your Section A/B for this set though? I kind of guessed a lot of them. Overall, paper went well thankfully!
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Section C:
*10 marks NPV for calculating and commenting on and comment on the discount rate used to calculate the NPV.
*5 marks for calculating Working capital needed for the project and comment on the PV.
*5 marks to Discuss Profitability Index and how to choose the projectThe other section C was:
*Working Capital Ratios for 2 years (6 marks)
*Calculate Cash Operating Cycle for 2 years for the company and Industry(2 marks)
*Comment on the findings (7 marks), in this I forgot lots of important points that I am only remembering now at home.
*Discuss Aggressive and Conservative approach and comment o the companySection A a mix -awful one
Section B -Biz valuations and Risk Management, both more theory than calculations which was horrible.
Praying to God to get the enough to pass.Vanessa, for npv did you get two thousand and something as your answer? Maybe 2,400 something like that?
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I got something very close to that figure
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Max, I don’t remember exactly but I got a positive NPV and it was something around that.
How did you comment on the working capital calculation?I think I calculated the working capital npv to be a minus figure but had no idea how to comment. I just said something like it was negative so would have brought total npv down if was included which I know is probably completely wrong!
I also really struggled on section an and b – and guessed most of the answers.
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I actually calculated the working capital and said that the results would affect NPV but the project would still be acceptable because the NPV was still positive. In my calculations the working capital was recoverable at the end of the project.
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i found the present value for the working capital looool but i did not calculate the npv – I messed up on the exam again!!!
Hi everyone. Did anyone get NPV of 553,615? We had to deduct 1m from FC and also ignore development costs right? Additionally, my answers were as follow for loan notes. Interest cover – 5.2. EPS – 0.2016 and gearing 36.8%. For rights issue, Interest cover – 9.75, EPS – 0.168 and gearing 21.05%
Hey vanessa ans max. Got the same paler as you both. Vanessa npv was close to some 2500 for me and i did what you did for working capital as well.
My section A was horrible. The paper had so much theory. I did not expect it to be so theory intensive. Not even sure if my theory mcq’s are correct
I had the same exam as Vanessa. I got NPV of around 2000 and used the discount factor at 13% which was the nominal WACC figure. Didn’t use the loan DF of 6%. What did people think on that?
For the working capital questions, the cash operating cycle worsened significantly from like industry average to 63 or something. All i remember was that companies financial management fell off a cliff!
Hey Vanessa!!
Got the same qs as yours..NPV was 2000-3000 i remember that…for working capital, what I did was that I just calculated the present value of it, just the work capital and its recovery and at the end, its present value..I DID NOT use the prev qs and calculate the NPV again (although I did write in comments that when we input work cap in the main qs, we would get a +NPV of smth around 64)
I have a qs, I did enough to secure atleast 4 if not 5 marks right?? I think I made a mistake not to calculate the NPV from the start again or even just calculate everything from taxable profits onwards to give a much better view of NPV instead of just writing in comments..One more question, did anyone get that question in mtq#2 i think, to calculate the M.V of loan note that had like 7% coupon rate, 3.5% rate of int paid after 6 months, to be redeemed at a premium at 4% after some years??
I marked the 106 smth answerr therei just sit the exam today, it was strange really there is nothing clear
is it possible to get cash flow before tax negative for some year
they gave information to find the NPV and when it come to fixed cost they mentioned 000$/year is that mean that i have to put 000 on the figure isn’t ?
when i do that i get negative cash flow how do i deduct tax then ?
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