acca past paper f9
Financial
Management
Time allowed
Reading and planning: 15 minutes
Writing:
3 hours
ALL FOUR questions are compulsory and MUST be attempted.
Do NOT open this paper until instructed by the supervisor.
During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor.
This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
Paper F9
Fundamentals Pilot Paper – Skills module
ALL FOUR questions are compulsory and MUST be attempted
1
Droxfol Co is a listed company that plans to spend $10m on expanding its existing business. It has been suggested that the money could be raised by issuing 9% loan notes redeemable in ten years’ time. Current financial information on Droxfol Co is as follows.
Income statement information for the last year
$000 Profit before interest and tax
7,000
Interest (500)
Profit before tax 6,500 Tax (1,950)
Profit for the period 4,550
Balance sheet for the last year
$000
Non-current assets
Current assets
Total assets
Equity and liabilities Ordinary shares, par value $1 5,000 Retained earnings 22,500
Total equity
10% loan notes
5,000
9% preference shares, par value $1
2,500
Total non-current liabilities
Current liabilities
Total equity and liabilities
$000
20,000
20,000
40,000
27,500
7,500
5,000
40,000
The current ex div ordinary share price is $4.50 per share. An ordinary dividend of 35 cents per share has just been paid and dividends are expected to increase by 4% per year for the foreseeable future. The current ex div preference share price is 76.2 cents. The loan notes are secured on the existing non-current assets of Droxfol Co and are redeemable at
Management
Time allowed
Reading and planning: 15 minutes
Writing:
3 hours
ALL FOUR questions are compulsory and MUST be attempted.
Do NOT open this paper until instructed by the supervisor.
During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor.
This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
Paper F9
Fundamentals Pilot Paper – Skills module
ALL FOUR questions are compulsory and MUST be attempted
1
Droxfol Co is a listed company that plans to spend $10m on expanding its existing business. It has been suggested that the money could be raised by issuing 9% loan notes redeemable in ten years’ time. Current financial information on Droxfol Co is as follows.
Income statement information for the last year
$000 Profit before interest and tax
7,000
Interest (500)
Profit before tax 6,500 Tax (1,950)
Profit for the period 4,550
Balance sheet for the last year
$000
Non-current assets
Current assets
Total assets
Equity and liabilities Ordinary shares, par value $1 5,000 Retained earnings 22,500
Total equity
10% loan notes
5,000
9% preference shares, par value $1
2,500
Total non-current liabilities
Current liabilities
Total equity and liabilities
$000
20,000
20,000
40,000
27,500
7,500
5,000
40,000
The current ex div ordinary share price is $4.50 per share. An ordinary dividend of 35 cents per share has just been paid and dividends are expected to increase by 4% per year for the foreseeable future. The current ex div preference share price is 76.2 cents. The loan notes are secured on the existing non-current assets of Droxfol Co and are redeemable at