P4 exam tips – June 2013 (Bpp, Kaplan, LSBF, First Intuition, Becker)

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

Kaplan

The current examiner has expressed his desire to move the paper away from the highly
technical papers set in the past, and to make them more strategic and practical. This has been a
feature of the last few exam papers set by the current examiner, and is expected to continue,
particularly in the new 50 mark compulsory section A question. At the February 2013 ACCA
Lecturers’ Conference, the examiner explained that question spotting is dangerous at this level –
it is important that students should study all parts of the syllabus in detail.
However, for June 2013, I would advise students to focus on the following core syllabus topics
in particular:
• Net Present Value – including foreign currency cash flows
• Risk adjusted WACC
• Discussion of financing options
• Interest rate hedging – options, futures and FRAs

BPP

Section A of the P4 exam will, from June 2013, contain one compulsory question; this 50 mark question will, inevitably, draw from a number of different syllabus areas. The examiner has said that he does not plan exams by referring to past exams (i.e. checking that the whole syllabus is being tested over the course of a number of exam sittings). This makes question spotting almost impossible. However we would expect section A questions to test core syllabus areas such as discounted cash flow and business valuations (both of which are likely to include cost of capital calculations) and hedging.
In section B (50 marks in total) you will need to choose two questions from a choice of three. Each question will be worth 25 marks, one of the questions may be entirely discussion based (but this is not guaranteed from June 2013). Commonly tested areas include risk management, the Black Scholes model and cost of capital calculations. Islamic finance is new to the syllabus and could feature as an aspect of a question.

Opentuition

Section A – 50 mark compulsory question

NPV calculation for an investment in a foreign country, including forecasting exchange rates, calculation of cost of capital, inflation and tax. Discussions on risks and on ethical issues.

Section B – choice of 2 from 3, 25 mark questions

1 Black Scholes option pricing

2 Interest rate risk management

3 Written question on Islamic finance

LSBF

International investment appraisal with adjusted present values or net present values.
* Cost of capital using the principles of Modigliani and Miller prepositions or geared and ungeared betas.
* Mergers and acquisitions – valuation using free cash flows, defensive tactics and regulations of takeovers.
* Capital reconstruction schemes – designing a capital reconstruction scheme or assessing the success of a given scheme.
* Option pricing theory. Real options, example, option to abandon, expand and delay. Valuation of company using the Black-Schole option pricing model and delta hedge.
* Hedging exchange rate and interest rate risk using futures, options and swaps.
* Islamic finance.

First Intuition

* International investment appraisal techniques focusing on risk management tools such as value at risk.
* Impact on WACC following hedging of interest rate risk.
* Company valuation based scenario, possible MBO finance to structure.
* Adjusted present value with link to real options and Black Scholes option pricing model.

Becker

• Role and responsibility towards stakeholders.
• Domestic and international investment decisions.
• Mergers and acquisitions.
• Corporate re-organisatio strategies.
• Advanced treasury and risk m management techniques.
• Impact of macro economics and international financial institutions.
• Emerging issues in finance and financial management.

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Source: https://www.pqaccountant.com/
https://www.kaplan-exam-tips.com/acca/

Very best of luck with your exams!
ansi