BEST GUESS FOR F9 JUNE 2014

F9 EXAM FOCUSED

1. Working Capital Management
“Factoring” calculation
Explain the factors of Working Capital Management policy
Analyse the financing strategy of company
Explain the method of receivable management

2. Risk Management
Explain the Interest & Purchasing Power Parity Theories and predicting Exchange Rate
Calculation of Forward Contract and Money Market Hedge

3. Valuation of Business
Valuation of company under Price Earning Ratio and Dividend Growth Model in delaying payment
Calculate value of Convertible Debt.
Explain the Market Efficiency

4. Cost of Capital
Calculate WACC and Revised WACC
Explain WACC as discount rate in Investment Appraisal
Explain Systematic & Unsystematic Risk and relationship of Portfolio Theory

5. Business Finance
Examine Dividend Policy under Dividend Relevance and Irrelevance Theory
Measure the effect on Share Holder’s wealth and analyse the finance position of company
Explain the Debt & Equity as source of Finance

6. Investment Appraisal
Calculate NPV with Inflation & Tax
Explain Probability and Sensitivity
Explain problem and solution in Investment Appraisal for Asset with different replacement cycle and Capital Rationing