ACCA | F9 - Financial Management
- Working capital. This has always been a
favourite theme; questions on inventory management and receivables
management are likely here. Make sure that you are comfortable with
using working capital ratios to calculate inventory, receivables,
payables and cash balances.
- Investment decisions. This exam normally
contains a question involving net present value (NPV), often with
tax and inflation. Remember that you may need to calculate a
weighted average cost of capital before you calculate an NPV.
- Sources of finance. This is a topical area, we
would expect a part question on financing problems covering gearing
issues and problems for small-medium sized companies. Ratio
analysis is likely to feature here.
- Business Valuations. This area is commonly
tested and is a core syllabus area. You should note that in recent
sittings the examiner has looked to combine different syllabus
areas within the same exam question – for example asking you to
calculate a cost of equity and then use it to value a company. Make
sure that you are also able to value debt.
- Financial environment & risk management.
Recent exchange rate and interest rate volatility could impact on a
company’s financial management plans – a part question on this area
could be set, with further discussion and calculations on hedging
techniques.
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