So what did everyone think of that paper?? General feeling from people in my sitting was "What the f*** was that!"
i did think it was hard too, the mc questions were tough and the ratio analysis question took ages coz they just gave basic figures and not p/l account. Anyone know the solutions for the WACC question (19)?
In my opinion - a hard paper in comparison to the past papers. What got to me most was the multiple choice! I felt there were some trickly little ones in there. Q20 was tough - and not too hot on Q19 either. I heard some people after the exam saying they weren't too impressed with the paper, but one the other hand some people were quite happy too.
Heya yeah the MC were annoying... brilliant to see a Q1 like that !!!!!!!! Also investment trust one.. grrrrrr I liked the rest of the paper, answers for Q19??! Just based around systematic and specific risks, and how beta of a project isnt the same as beta of the company... long question Q20 took absolutely ages, I was quite a bit ahead of the "time" at that point, so was able to spend about 50-55 minutes on it.. I got that it was doing better, the acid test had dropped below 1, (0.61 i got) but I said this would need looking into, the fixed assets had increased without a change in reserves + share cap, which ruled out a revaluation, so they must of spent some cash on assets... which would of decreased the acid test ratio?!? I made a few assumptions about creditors and debtors, but got that all those efficiency ratios had improved.. maaaaan it took ages..
Too long The problem with Q20 being so long was that I didn't have time to say much about the ratios apart from obvious increase/decrease comments. So don't think I'll get more than half marks. But good news is I think I also got about 0.6 for the quick ratio!
