[mati1103]

Pecking order theory was definitely part of the syllabus alongside theories such as Traditional View on Capital Structure and Miller and Modigliani ones.

I had the cash operating cycle and P/E ratio myself but in section A instead.

Overall the Section A was hard but doable, Section B was quite a disaster with business valuations and Section C was the best with few tricks on the allowable cash flows for NPV appraisal.

[mati1103]

This is because the question is specifically asking you for a six-month forward exchange rate calculated by the interest rate parity.

The purchasing power parity (with inflation) calculates the future spot rate rather than forward rate.

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