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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Sources of finance
The effect of different financing options on key ratios EPS, Debt to Equity, interest cover etc Sir plz tell me how to handle these type of questions..
I cannot give you a standard rule – every question is different, and is so depends on exactly what the question asks for.
Obviously you need to learn the various ratios.
Usually it means calculating the ratios on the current figures; then calculating how the figures will change under the financing option; then calculating the ratios again.
Sir
business finance is alternate name for sources of finance?
and it will be tested in the 15-mark questions
and business valuation is same as valuation of securities
Yes to both.
(although who says business finance will be tested in the 15 mark questions? It may be tested, which is not quite the same thing 🙂 )
