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Hello ACCA peers! Anyone for F9 this summer? Lets all share and help each other;)

+6 Votes
May 1st 2014 AN ACCA USER 1,490 Points

17 Replies

+2 Votes
Have started questions, main thing I am struggling with is hedging and working our which exchange rate to use. Any tips ?
May 2nd 2014 AN ACCA USER 240 Points
0 Votes

I am in for F9! :) How are you doing so far?

May 1st 2014 AN ACCA USER 180 Points 1 Flag
0 Votes

Hi there! Well, I guess doing a bit slow so far... Still didn't touch questions and some topics. Finding BPP book very complicated - so watching videos now. How about u? any better?
Cheers

May 2nd 2014 AN ACCA USER 1,490 Points
0 Votes
Try to study from Kaplan, the language is more simple and understandable. I also find BPP complicated.
May 2nd 2014 AN ACCA USER 220 Points
0 Votes

Hi Louisa! Congrats with doing questions! I am still far too far:)

I haven't yet reached the Hedging topic unfortunately. So - sorry cannot help u on that.

My question of the day is (maybe I will figure out later when I am more or less aware of the topic): Is RESIDUAL VALUE taken into account when dealing with ROCE and NPV calculation? I mean - do we add RESIDUAL VALUE to the Cash Flows in both methods? I have come across an example - and residual value was not included into CF when doing ROCE; and was included into CF when doing NPV! confusing...... So if u can somehow make it a bit more clear for me - I will really appreciate that.

cheers

May 2nd 2014 AN ACCA USER 1,490 Points
0 Votes
ROCE =  EBIT/(Average Debt+Equity), there is no residual value here. It affects just Earning: higher residual value => less depreciation => Higher Earning => Higher ROCE
I don't understand where you want to add it.
May 2nd 2014 AN ACCA USER 220 Points
0 Votes
Hi Gheorghe! Thanx for ur comment:)
I was meaning the Investment appraisal topic, where we have cash flows, initial investment, depreciation, residual value sometimes and we ought to calculate either ROCE (ARR) or NPV.
For NPV: when we start our workings we list all our Cash inflows as well as Initial investment AND we add Residual value to the last year cash inflow!
I was wondering - do we do the same when dealing with ARR (ROCE) or not? and why;)
May 2nd 2014 AN ACCA USER 1,490 Points
0 Votes

Hi guys! anyone came across a question called ''blackwater'' when dealing with DCF Taxation topic? Cannot find the complete Solution to that. If anyone can share or at least know the resource where I can find the solution - this will be appreciated!

thanx and good luck!

May 3rd 2014 AN ACCA USER 1,490 Points
0 Votes
yeah.........
May 6th 2014 AN ACCA USER 280 Points
0 Votes
ROCE is more simple to calculate, Just calculate the average anual income, = (cash flow - depreciation(/nr of years, and than the average capital employed (Investment + residual value) /2
ROCE = Average anual income/ average capital employed
May 16th 2014 AN ACCA USER 220 Points
0 Votes
residual is relevant cash flow for NPV evaluation, as for ROCE, on the top of fomular, it is relevant to operating profit, BUT THE TRICK IS HERE, operating cash flow DO NOT equal operating profit, the difference is depreciation, for example, if you only buy 1 asset, cost 100, and you earn revenue from this 1 asset, e.g. you get $300 per month, then what is the cost of using this asset? it is depreciation, right? thus the operating profit = 300 - accumulated depreciatin of this asset, then you use operating profit to calculate ROCE/ARR/ROI (pls note ROE is very different)
May 21st 2014 AN ACCA USER 1,180 Points
0 Votes

a tip to LOUISA RUSSELL, regarding which exchange rate to use.
e.g. USD5.67 = POUND1, whenever you see 1, that is the home currency or so called base currency when you calculate purchasing power parity or interest rate parity.

if you see spot rate 1 Jan 20x1 (us per pound) = 1.5123-1.5245, then almost for every case, 1.5123 is to buy$, 1.5245 is to sell $, just remember on the left is buy and on the right is sell, or you can memory it by understanding, i.e. if you buy, you get less, because seller is mean, if you sell, you get more, because buyer s asking for more. haha

May 21st 2014 AN ACCA USER 1,180 Points
0 Votes

Can u help me in studying f9. I dint started much yet

March 21st 2015 AN ACCA USER 370 Points
0 Votes

any of you need practice material than inform me
i have a big collection of f9 study materiel

February 19th 2017 AN ACCA USER 17,840 Points
0 Votes

✪ Any one interested for F9 summary+revision notes for march 2017 ?
Step 1 ✅ Click on vote
Step 2 ✅ Drop your email in reply
✪ F9 summary notes, ✿ F9 revision notes,

February 24th 2017 AN ACCA USER 17,840 Points
0 Votes

ROE = Net Income for the year / Equity , what is "Equity", is = Average Equity or only Ending Equity ?

October 1st 2019 AN ACCA USER 260 Points
Edited October 1st 2019 AN ACCA USER
–1 Vote
so, what about attempting F9 + F5 and F6?
It would not be easy, isn't it?
July 28th 2014 AN ACCA USER 310 Points
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