Guidance from well prepared P4 Candidates

Hey there,

My situation is same as yours, P4 & P7 along with full time work, but I have put a lot of effort on P4 , I would suggest you few things to concentrate & since you have already registered for P4, don’t let it go. I am not question spotting here.

1) Black & Scholes option pricing
2) Free cash flow to Firm — See past papers how APV is integrated to this. ( Learn how to calculate Terminal Value )
3) Interest rate risk ( Very likely to be examined this time ), try to understand bit by bit how futures are calculated and how options are calculated – they are not the same.
4) Read as much as you can the theory part, there is a difference between seeing and observing, and also difference between reading and understanding, try to understand what you read. Read it once but attentively as 50% of paper will be discursive.
5) Even if you know your calculation is wrong, eg ke you got is 16% and you know it may be wrong, give your explanation based on it. In case you cant calculate ke at all , ( Write ” Ke Assumed to be x% ) and discuss how firm will use it , etc.
6) See how report layout is in past papers, you will get at least 3 of 4 from professional marks just to make it in a report format.
7) Ethical issues,current-emerging issues,and Islamic finance – read the theory bit – 5-10 marks you can expect every paper.
8) Write “Something ” related to all questions of 100 marks, leaving it blank gives no marks.
9) Lot of tips are on this site for upcoming exam – try to brush up them once.
10) Last but not the least , have faith in “God ” . I wish not but if you didn’t make it this time , you will know how many marks you have achieved and if you can put more effort next time , since you are not planning to attempt it anyway.

Do pray for me and all P4 candidates appearing for Dec -14.