Exam Tips June 2014 – F9

1. Investment Appraisal: this topic appears in every exam. Make sure you practice
Lease or Buy as well as NPV and Risk and Uncertainty.

2. Working Capital Management: this topic also comes up every exam. Cash Flow
Forecast is an important topic to study as well as overtrading and the financial
impact of changing a receivables or payables policy.

3. Cost of Capital: Make sure you can do a full WACC question including cost of
debt for a convertible bond and discussions regarding reducing Cost of Capital
to a minimum level (Traditional view vs M&M).

4. Management: Forex risk and Interest Rate Risk, including calculations for an
FRA

5. Valuation and Business Finance: Make sure you can do a full discussion on
sources of finance, including difficulties for SMEs, and rights issue calculations