Académique Documents
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Investment Appraisal:
IRR
Receivables management
Valuations:
PE ratio
Business Finance:
Cost of Capital
Risk Management:
Bpp
Section A
20 multiple choice questions worth 2 marks each. The MCQs will largely be knowledge
based and will balance out the questions in Section B to make sure that all aspects of the
syllabus are examined. It is likely that some of the MCQs will test the financial
management and objectives (ratio analysis, the concept of shareholder wealth) as well as
economic environment and financial institutions topics (financial intermediation, fiscal and
monetary policies). The efficient market hypothesis is likely to be tested here too. But bear
in mind that the whole point of setting MCQs is to test good coverage of the syllabus in the
exam.
Section B
Q1 Q3: Three 10 mark questions. The questions will be broken down into sub
requirements and may also be based on a short scenario.
Q4 & Q5: Two 15 mark questions which will be broken down into sub requirements and be
scenario based. These two questions will focus on these topics investment appraisal
(likely to be an NPV with inflation and tax), working capital management and business
finance (either an evaluation of financing options interest coverage and gearing ratios
are likely to be important here or a cost of capital calculation are most likely). Whichever
of these three topics does not feature in question 4 or 5 will appear in question 1, 2 or 3.
D Investment appraisal
E Business finance
F Business valuations
G Risk management
Lsbf
Calculating cost of equity using CAPM or dividend valuation model, cost of redeemable
debt and bank loan/preference shares. Circumstances under which WACC can be used.
Calculation of NPV. Discussion question on risk and uncertainty example sensitivity
analysis and probability distribution.
Valuation of equity using; DVM, P/E ratio and asset basis. Valuation of convertible debt
and calculation of conversion premium. Explanation of weak and strong form of efficient
market.
Hedging currency risk using forward contract and money market hedge. Discussion of
transaction, economic and translation risk.
First Institution
Discussion of the economic environment and the impact on interest and exchange rates.
Business valuations.
OpenTuition
Section B: 5 questions:
Management of receivables
Beckers Professional
NPV
IRR.
Debt factoring.
Dividend policy.
Kaplan
Kaplan
Kaplan
Kaplan
Kaplan
Kaplan
Kaplan
Kaplan
Kaplan
Kaplan
Kaplan
Kaplan
Kaplan
BPP
BPP
BPP
BPP
BPP
BPP
BPP
BPP
BPP
First Institution
OpenTuition
OpenTuition
OpenTuition
OpenTuition
OpenTuition
Investment Appraisal
Investment Appraisal
Working Capital Management
Working Capital Management
Working Capital Management
Valuations
Valuations
Valuations
Valuations
Business Finance
Business Finance
Risk Management
Financial Management Function and Environment
Working Capital Management
Working Capital Management
business or security valuations
business or security valuations
financial risk managemen
financial risk managemen
Investment Appraisal
working capital management and business finance
working capital management and business finance
Financial Management Function and Environment
Working Capital Management
Valuations
Investment Appraisal
Cost of capital
BPP
BPP
BPP
BPP
BPP
BPP
BPP
BPP
Lsbf
Lsbf
Lsbf
Lsbf
Surely tested
Surely tested
Surely tested
Surely tested
Surely tested
New Area
New Area
New Area
Lsbf
Lsbf
First Institution
First Institution
First Institution
First Institution
First Institution
First Institution
Beckers
Beckers
Beckers
Beckers
Beckers
Beckers
First Institution
First Institution
First Institution
First Institution
Section A
Section B
Section B
Section B