F9 Exam Tips from LSBF & Open Tuition. F9 Open Tuition 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. F9 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.
Posted on: Fri, 15 Nov 2013 14:39:00 +0000
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