F9 – exam tips – December 2013 (Kaplan, First Intuition, LSBF, Opentuiton)

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

First Intuition

• Discussion of the economic environment and the impact on interest and exchange rates.
• Working capital management.
• Investment appraisal and cost of capital.
• Business valuations.

Kaplan

• Investment appraisal.
• Working capital management.
• Valuations.
• Business finance.
• Cost of capital.
• The financial management function and the financial management environment.

Becker Professional Education

• Rights issues.
• IRR.
• Capital rationing.
• Lease vs buy decisions.
• Debt factoring.
• Dividend policy.
• Efficient markets hypothesis.

LSBF

Investment appraisals:
NPV, lease or buy decision, capital rationing/asset replacement.

Cost of capital:
WACC: calculating cost of equity using CAPM, cost of redeemable debt and bank loan/preference shares.
discussion of capital structure theory (traditional, both theories on M$M, and pecking order theory).

Working capital management:
working capital policies relating to working capital financing/investment, factoring, EOQ or probably a cash budget.

Business valuation
valuation of equity using; DVM, P/E ratio and asset basis. Valuation of convertible debt and calculation of conversion premium. explanation of weak/semi-strong and strong form of efficient market.

Sources of finance
factors to consider in raising short/long-term capital or equity/debt capital.
right issues and calculation of TERP and effect on shareholders wealth.
Effect of raising debt/equity capital on some key ratios like EPS, Debt/equity ratio and interest cover.

Risk management
A discussion question on interest rate risk.

Opentuition

1 DCF – Lease & Buy and/or Replacement and/or Capital Rationing
2 WACC (including CAPM) + theories of gearing
3 Cash Management and Inventory Management. Written part on interest rate risk.
4 Share valuation + written on market efficiency + sources of finance.

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Source: https://www.pqaccountant.com/

Very best of luck with your exams!
ansi