Essay about Pce Past Exam

2047 Words Jun 11th, 2011 9 Pages
Professional Competency Examination 2
Tasman Travel

Date: Time Allowed: Instructions:

8 November 2005 6 hours This examination is in two parts: Part A: Part B: Compulsory — you MUST answer this question Answer ANY THREE questions

Summary of Paper:
Part A Compulsory – answer this question

Question 1
Part B

IFRS
Answer ANY THREE (3) questions

110 marks

Question 2 Question 3 Question 4 Question 5 Question 6

Valuation Corporate Governance Audit and Assurance Capacity Analysis Business Strategy Total Part B TOTAL

80 marks 80 marks 80 marks 80 Marks 80 marks 240 marks 350 marks

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You are an independent consultant contracted by Tasman Travel. Refer to Exam Day Resource 2. You have been provided with: Tasman's summarised Financial Statements of Financial Performance for the 2004 and 2005 financial years, together with the forecast information for the six month period ended 31 December 2005 and the twelve month period ended 30 June 2006 (Table 1), The ARMO Greggs Capital indicative valuation (based on the FCFF method) per share of $4.02, which will be the basis of the planned IPO (Table 2), and An extract from the PWC Cost of Capital Report for June 2005 (Table 3). What you need to do: Prepare a memo to Paul LaFrance with your analysis of the ARMO Greggs Capital indicative valuation per share for the Tasman IPO. Fully justify your analysis. Your memo should: • challenge any areas and assumptions in the ARMO Greggs Capital FCFF valuation with which you have a different interpretation, and comment on the overall consequences, • value Tasman using the comparables approach, • recommend whether or not to accept the ARMO Greggs Capital indicative valuation, and • outline briefly other issues which you believe to be important in floating a successful IPO. The length of your answer should be no more than 1,200 words. Note: ABEL may penalise any answer that exceeds the stated word limit.

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Professional Competency Examination 2 Tasman Travel

Question

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