• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

SA1 Sept 2012 1 ii

J

jtgreen

Member
Hi,

I have recently been doing the past paper for September 2012, question 1 ii, the answer talks a lot about Embedded value.

However when I initially tried this question I focused more on the assumptions required and how to generate them and relevent data sources. Does the solutions focus more on EV because it is an older exam and there is now less focus on EV or should a company valuation question still include EV?

Thanks!
 
The question asks "describe how it would place a value on the target company" so the answer describes the whole modelling process, including data, assumptions and cashflow projection. A current answer could still mention EV as it is still part of the course but it may be more explicit if it was looking for you to describe how the value would be calculated using EV rather than using a Solvency II basis. As you say, there is less significance on EV reporting now.

Hope this helps,
Sarah
 
You must log in or register to reply here.
Back
Top