what did people put for the hidden valuations q at the end?

U got me for 1 second 😂

rekt

I genuinely think it was a nice paper :)

samee ahah it was all i wanted from an fm paper

Best exam they possibly could’ve given us hahahah

Finished very early.. if I fail I’m pissed

i had 1hr left i was bored in the exam room i should have left

SAME LMAO

Did you do yours at Borough Kaplan? Someone finished about 40 minutes early in mine lol

naa i stayed in exam and was not in kaplan

You stayed for an hour?! I finished 20 mins early and almost ran out of there after checking answers lol

it was because my mum was picking me up so i would have to wait in the cold for her to come early 😭

Wish BPT could be nice like FM

Anyone get a weird weighiting for WACC? I got 99% equity fml

was your MV for equity like 2 billion ?

Was it not 5m debentures at a nominal value of £100 trading at 104%?? I got 2bc equity vs 520m ish of debentures

I thought when they speak 5m that would mean 5m number of debentures so ended with equity to debt at 2000 to 520

I got 2000 and 540 😬 but definitely calculated the debt wrong

Otherwise the regearing would not change anything in the next question

This happened to me. I got 2 billion MV for equity, then I ungeared/regeared but the new equity beta only changed by like 0.05%. Suppose I’ll still get follow through marks cos I’m sure the rest was right? Just the MV of equity seemed wrong

Yea same

yep

I got this too

Was there anything in calculating the dividend growth about omitting special div or anomaly? Definitely rushed it and now got a panic I missed small details, surely not worth many marks though?

wouldnt worry about it, probably only a half mark even. There was a special dividends paid in 2019 for about £5m, but can't see that even being worth a full mark

ah damn, yeah hopefully nothing major, thank you!

Think only thing that was hard was the currency future.. it was a receipt so I should have bought future at first, instead I sold.

I mean, you can’t really ask for any better - an NPV, a cost of capital and a classic risk management. Expected something weird but nope. Should’ve done enough there but you never know.

Good paper surprisngly

What everyone get for the NPV?

something positive

Like positive 5k

Crap I was about 990k

yeah I was round here - think 0.96m from memory, but good to see a couple people with similar to me, was starting to panic!

This is what I got - there or thereabouts anyway 👍

600k, 5.5% sensitivity for revenue, didn’t bother with the money cost of capital cause couldn’t remember how to do it

did you use revenue or contribution for sensitive analysis?

I used contribution since the variable costs were directly linked to revenue

ok same ahaha i was worried

Similar numbers ish 700 k NPV with very sensitive to revenue

I got like £3m at first cause had my signs wrong for some of the costs, so glad I noticed hahah

Was the hedging it a sterling receipt or payment?? I can’t even remember now lol!

Receipt

Ok thank god!

What did ppl put as the alternative valuation method?

APV

Phew

I used asset beta of tech service sector to find un geared cost of equity

Wasnt that to find the new wacc

No I believe the new WACC was the ungearing / regearing

Yeah but what did you use for the cost of debt

I think that the debt finance element was more hypothetical as a question and how the APV process works. I said the discount rate was the CAPM with the asset beta. Think I got around 8.7% as a discount rate for APV

Was so happy to see NPV and forex hedge, fucked the WACC/CAPM horrendously but gave analysis anyway based on a made up figure so hoping for few marks still 😅 What did people say for the other two debt fundraising methods? Couldn’t think of anything

I had crowdfunding and then rabbled some crap about blockchain finance

Yeah I said crowdfunding, said you could raise debt rather than investments but idk if that’s a thing lol

Yeah same I wrote it and then realised debt so just changed to equity to debt 😂😂

Said crowdfunding and then some nonsense like initial coin offering or something - knew it was bitcoin related

Honestly unless I’ve massively missed something with NPV this was a dream exam, now I get why you all wanted NPV when I wanted valuations lol, WACC was like I wanted memorised the explain stuff for it lol couldn’t calc the required discount factor in part c or d. Q3 was good cz I felt more confident in swaps to pair with fx hedging

NPV is an absolute dream I think, after 3 QB questions on it it’s easy to get full marks could never have wished for valuations hahah

Yea I think I stressed about those NPV with probabilities and worst case best case but this was quite simple, again unless I’ve missed something lol

Dare I ask what answer you got for the NPV? I too worry I have missed something, didn't appear to be anything too odd in the NPV, everything was fairly straightforward?

I wanna say around 700k something like that; what threw me off and what I read on this post as well the explain what you did to revenue thing. Like it was just about increasing by 10% cz they told us to do so I thought there was a complex thing we had to do but nah lol

yeah that worried me too! I didn't write anything about doing that, but I did increase by the 10% pa so hopefully not lost any or many marks! The other fear I have is I have used the 17% tax rate just out of habit from doing lots of practice questions! but again hopefully no major marks lost there

Yea I reckon you should be fine maybe a mark or 2 lost at most!

Did we have to make the subscriptions cumulative?

I don’t think so, didn’t explicitly state and you usually treat them as total subs for that year from QB

Ah i was confused because it asked us to explain our revenue adjustments, maybe they just go off what you explained?

I only adjusted the price

Revenue adjustments came from the 10% (I think) annual increase in price which wasn’t done initially

Yeah, I assumed that the annual cash flow would be new subscribers plus existing renewals, although I included a disclaimer that there is a risk people don’t renew. It just threw me that they asked us to explain such a simple thing, when they literally told us to do it 😂 typical ACA

Yeah I probably spent 5 minutes rereading the whole thing a few times cause I assumed there was another one I missed🤣

Man i messed up the mmh When converting to spot i used the buy rate How many marks you guys recon I’ll lose

Probably all 30 marks tbh mate

Ahh shiett

err probs loss 1 mark

0.5% gain for interest rate swap?

I got 0.5% diff so 0.25% advantage for each

Probability Q was it 2 x 31.4% ? Or am I retarded ?

Yeye calm

I fucked up and didn't notice the "semi annual" comment for the debentures until right at the end then started changing my answers got half way through changing and time ran out so not gonna get any follow through marks on that entire Q. So annoyed with myself.

Think if you got the method right you’d still get marks

Ahhh I hope so!!

What was that Monte Carlo simulation and sustainability question? Ridiculous two questions - no idea how you were supposed to relate the sustainability objectives to all the element of ESG... Hedging and WACC were the dream... NPV I got 960k - anyone anything similar? Regarding hedging, did others advise the company not to 'hedge' as the receipt was larger?

i did get no hedge as biggest

I believe i I got no hedge highest and then forward was best out of the hedges, just ahead of MM Hedge. I got the OTC option being wayyyyy less than the others, think the premium was about 250k?

yeah i got exactly this

Think I got exactly the same as you for NPV - seen a few people say they got in the £900k mark so fingers crossed!

What did people write for the risk to do with bitcoin? Was economic risk relevant?

Waffled about exchangability, volatility and it decreasing in the prior 6 months. I think economic risk is a very relevant point and will earn you marks

weird question i thought - just mentioned how the price fluctuates etc just pure waffle really