F9 Int exam tips – June 2013 (Bpp, Kaplan, LSBF, First Intuition, Becker)

Exam tips are out! Enjoy but do not rely on them.

Kaplan

The F9 Examiner has repeatedly stated that he will test across the whole syllabus.

Investment appraisal
This is a key topic which is highly likely to be examined every time. The most common technique
assessed is NPV with inflation and taxation although be prepared for a twist, possibly involving some
of the more basic methods of the applications of NPV such as replacement analysis or lease v buy. It
is also worth bearing in mind that IRR has not been tested for three years so may pop up in some
form.

Working Capital Management
Another key topic which is likely to examined every time. Exams to date have covered much of this
topic but it’s been a while since we’ve seen the more numerical aspects surrounding cash
management. A discussion about funding strategies is a key discursive element.

Valuations
This has been examined in virtually every F9 exam to date. Cash flow based values have yet to be
examined although the PE ratio and dividend valuation methods still appear to be the more
examinable areas. There are often high scoring discursive elements in this area of the syllabus for
being able to discuss the implications of something on the value of the business or perhaps the
relative methods of the valuation methods.

Business Finance
This topic has been heavily examined recently and in particular the impact of financing on ratios is an
area the examiner likes. Make sure you’re able to discuss the impact that different policies may
have on a company by being able to both calculate and interpret financial ratios.

Cost of Capital
This topic features in virtually every exam to a greater or lesser extent. Good coverage of all of the
syllabus areas is therefore essential to ensure you can handle any eventuality on the day.
Candidates should feel confident when calculating the overall cost of capital (WACC) and going on to
discuss the impact of the cost of capital on investments. It’s been a while since we’ve seen CAPM
based calculations.

Risk Management
Within this section of the syllabus, foreign exchange risk has been examined more often than
interest rate risk. However, both are fairly under-examined areas of the syllabus as a whole and so
this is a topic worth being on top of.

The Financial Management Function and the impact of the economic
environment upon it
We can probably expect one specific topic from these syllabus areas to feature as a tag on discursive
element within one question on the exam. This part of the question can provide some easier
knowledge-based marks and therefore is worth some focus.

BPP

The Examination contains four compulsory 25 mark questions, usually each question features a scenario and multiple requirements. Approximately 50% of the marks will be awarded for calculations and 50% for discussion. It is important that you practise both skills.
The F9 Examiner likes to test across the whole syllabus. In many post exam commentaries he has stated that candidates who were well prepared and who had studied all parts of the syllabus did well on this paper. Candidates who were not successful may have focused on a small number of topic areas.
Investment Appraisal, WACC, Working Capital and valuations have featured in most exams, but just focusing on these topics alone will not be enough to generate a pass. It’s possible to get a whole question on each of these topics but they may just form part of a single question. There is a fair chance that managing foreign exchange rate risk may be tested in June, but historically this has been for less than 10 marks.
To maximise your chances of passing you will need to ensure you have a wide understanding of the whole syllabus.

Opentuition

Capital rationing calculation + discussions on lease / buy and replacement

WACC calculation + CAPM + discussion on theories of gearing

Receivables management + funding of working capital + foreign exchange risk management

Business valuation + discussion on dividend policy

LSBF

* Investment appraisal including tax and inflation possibly with lease or buy decision.
* WACC with some capital structure theory.
* Working capital maybe including cash budgeting and cash management.
* Risk including FC and MMH.
* Business finance with discussion of sources of finance.
* EMH discussion.

First Intuition

* Discussion of the economic environment and the impact on interest and exchange rates.
* Working capital management.
* Investment appraisal & cost of capital.
* Business Valuations.

Becker

• Rights issues
• IRR
• Dividend policy
• Lease vs buy decisions.
• Efficient markets hypothesis.

_______________________________________

Source: https://www.pqaccountant.com/
https://www.kaplan-exam-tips.com/acca/

Very best of luck with your exams!
ansi