APM FAE 2013

Dmac_Aca12

I get so confused when they talk about currency appreciating and all that .. I prefer when they just tell u inflation and u work it that way

Dee29

Dmac - your Appendix I is different to mine!! I am repeating so I have 2011/12 cases. There is also an error in my version. The bank overdraft is stated in the appendix as 50k, but in the solution its 100k and the opposite for the accruals.... This makes the existing gearing ratio incorrect. I would say they attempted to fix the solution for the 2012/13 pack and made a bags of it.

No time to scan so:

CL - creditors 100k, accruals 100k, loans < 1 year 100k, bank OD 50k
Equity - SC 200k, retained E 200k
LLL - 10% Deb 50k, bank loans 150k

Whiplash85

Yeah Im repeating the APM this year so working from last yrs cases/papers

Confirm both our Q have different figures....

Any 1 want to put their head on the line and make a few predictions as I dont know what to look at...

Dee29

Dmac_Aca12 wrote: »

I get so confused when they talk about currency appreciating and all that .. I prefer when they just tell u inflation and u work it that way

Doing a NPV calc in a FX and told the EURO will appreciate against the FX by 5% do:
Option 1
Take the spot rate and multiply by 1.05
eg AUS/EUR 1.70 => 1.7 x 1.05 = 1.785
Option 2
Take the WACC and multiply by 1.05
eg WACC is 10% => 1.10 x 1.05 = 1.155 = 15.5% adjusted WACC

Appreciation of Euro will adversely effect the NPV

If the Q tell you the FX will appreciate against the euro - always work it back to what will that mean for the EURO. If the FX is appreciating the EURO will be depreciating therefor opposite to the two options above. ie divide rather than multiply.
Option 1 above 1.7 / 1.05 = 1.619
Option 2 above 1.10 / 1.05 = 4.762%

Dee29

Transfer pricing...
Blocked funds hopefully as never asked before
something about e-commerce
sources of finance given the current difficulties in that area

Dmac_Aca12

Half by problem is just rushing in and not stepping back to think about it ... I m reason stuff that is nt even on the paper

Dmac_Aca12

Dee29 wrote: »

Transfer pricing...
Blocked funds hopefully as never asked before
something about e-commerce
sources of finance given the current difficulties in that area

I'm of a similar opinion ...

I think it's worse I'm getting not better ;(

pepp

Wot is everyone taking in with them in terms of books is it just the green book or are you taking finance book and mgt book just in case?

Dmac_Aca12

I'm bringing finance man Acc notes IT notes and strategy book . All just in case

Then I have my folder with cases one with notes and the green book that I use

pepp

Dmac_Aca12 wrote: »

I'm bringing finance man Acc notes IT notes and strategy book . All just in case

Then I have my folder with cases one with notes and the green book that I use

I hadn't even thought about the strategy book. Do you find it useful?

Dmac_Aca12

Not really to be honest part I used it for was org structures really ... I m just bringing them in case I really panic and can't do something !! Like going over a few of the samples cases today an either there all over the place or I am coz I'm struggling with them ;(

What's ur plan for today ??

pepp

Taking a last run though all the possible calculation bits like EPS and Ratio analysis etc just to make sure I can actually do them. No point in doing analysis based on the wrong figures!

I'm not great at the format of the exam so doing out some lists to stick at front of folder to remind me to include stuff like headings and appendix references that sort of last minute stuff.

Its not an overly productive day but just trying to avoid the panic stage in the exam where you start writing and go off on tangent so check list is my action plan for that.

Dmac_Aca12

Ya I kinda keep forgetting to do like the memo part or the report part and stuff like that . When doing core it's second nature but there is nt much of them in APM really

Mark1916

Ok all what's coming up on this exam tomorrow? Transfer pricing? Bit of NpV?

pepp

Mark1916 wrote: »

Ok all what's coming up on this exam tomorrow? Transfer pricing? Bit of NpV?

Npv would be good but not gaurenteed transfer pricing possible comparing sources of finance calcs ie swaps IMO also industry specific kpi's I'm worried don't think I've enough knowledge of different industies to analyse them.

Whiplash85

Swaps? I havent seen anything on this in any of the cases iv done to the best of my knowledge..

What cases or where could 1 have a quick look at these?

Dmac_Aca12

Swaps IMO ??? In what context ? Where have u seen those ...

I m the same with industry knowledge ;(

pepp

Cause they haven't been on and they are in the notes Im just being pessimistic they'd be something I wouldn't be overly sure of calculation wise and just trying to think of worst case scenario if they wanted to throw in something from left field (IMO in my opinion) posting on my phone it's rubbish for spacing lol!

Dmac_Aca12

Oh ha ha I was like **** what are IMO s

Mark1916

Here we go some last minute info

Dmac_Aca12

Guys do people have much notes on transfer pricing ...

What do ye plan to know about it ??

kb6536

I think swaps would prob be more in a theoretical context when talking about different ways to hedge

Dee29

Transfer pricing is covered in the book - Section 6.3 sorry 6.8...
There is a case too - can't remember if it was mock/real exam. CD's to Swiss subsidiary

Dmac_Aca12

Ya it's in global and it's in R&D 2010 but there small really.. If it was something like that it would be ok really... Just about to do question 8.2 in the book on it too

Whiplash85

just looking at financing here and can't remember how they get the 5000 debenture figure each year in the book Q page 144?

I can see in the Q B/S they give Loan stock and debenture 5000 but under the option they only mention stirke price, warrants etc and don't give any value of debenture..

Can some 1 explain this to a very tired head plz...;)

Also the EPS calc in this Q uses profit after Interest and tax...a few other case studies use PBIT...Which 1 is correct

THANKS

Dmac_Aca12

It's the 5 m extra cash they are raising ( 3 rd line from the bottom )

For EPS is nt it always profit after tax ??

Dee29

Yes I would do EPS on PAT as that is what the shareholder is interested in.

Whiplash85

haha Im blind & half asleep and trying to spped through a few Q's

thats it rest of nite off and have a quick look at theory tomorrow morning

Best of Luck 2mor

myshirt

My brain is splat. If you asked my what this course was about, I couldn't even tell you.

Say I never done this course... you guys who have read the book twice, and done 30 case studies etc... tell me, what do I need to cover in the morning.
I have 2 - 3 hours.
I know the truthful answer is it is a write-off, but if anyone can help, go for it. I'd appreciate it.
Last chance saloon.

Dmac_Aca12

Honestly if I only had 2-3 hours I d tab the **** out of the book nearly everything is in it. Mark out a good pest question a good NPV q and source of finance q & balanced scorecard think that will get u a long way