Keay Examinable Areas – Kaplan December 2012

Investment appraisal
This is a key topic which is highly likely to be examined every time. The most common technique assessed is NPV with inflation and taxation although be prepared for a twist, possibly involving some of the more basic methods of the applications of NPV such as capital rationing or lease v buy.

Working Capital Management
Another key topic which is likely to examined everytime. Exams to date have covered much of this topic but it’s been a while since we’ve seen the more numerical aspects surrounding inventory or payables management or anything regarding cash budgeting.

Valuations
This has been examined in virtually every F9 exam to date. Cash flow based values have yet to be examined although the PE ratio and dividend valuation methods still appear to be the more examinable areas. This syllabus area often appearsalongside cost of capital questions.

Business Finance
This topic has been heavily examined recently and in particular the impact of financing on ratios is an area the examiner likes. Make sure you’re able to discussthe impact that different policies may have on company by being able to both calculate andinterpret financial ratios.

Cost of Capital
This topic features in virtually every exam to a greater or lesser extent. Good coverage of all of the syllabus areas is therefore essential to ensure youcan handle any eventuality on the day. It’s been a while since we’ve seen any of the more technical CAPM based calculations regarding de-gearing and re-gearing betas.

Risk Management
Within this section of the syllabus, foreign exchange risk has been examined more often than interest rate risk. However, both are fairly under-examined areas of the syllabus as a whole and so
this is a topic worth being on top of.

The Financial Management Function and the impact of the economic environment upon it

We can probably expect one specific topic from these syllabus areas to feature as a tag on discursive element within one question on the exam. The most recent question focussed on stakeholder conflicts.