I read through the technical article on the ACCA website on analyzing the suitability of financing alternatives. There was a worked example.
My question is, how likely are we to be examined on a question of such magnitude in a section C and;
Would discussing gearing, profitability and liquidity ratios with their significance as to the scenario and concluding that both equity and debt be raised in an optimal structure be enough to score good marks?
You would not be asked a question in such detail (the article was not written by the examining team). However each bit that is discussed in the article is examinable.
What you suggest would get good marks in an exam question 🙂
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