ACCA
Paper F9
Financial Management
Mock Exam
Question Paper
Time allowed 3 hours 15 minutes
ALL questions are compulsory and MUST be attempted
DO NOT OPEN THIS PAPER UNTIL YOU ARE READY TO START UNDER
EXAMINATION CONDITIONS
Get into good exam habits now!
Take a moment to focus on the right approach for this exam.
Effective time management

Watch the clock, allow 1.95 minutes per mark. Work out how long you can spend on each
question and do not exceed that time.

Take a few moments to think what the requirements are asking for and how you are going to
answer them.
Effective planning

This paper is in exactly the same format as the real exam. You should read through the paper and
plan the order in which you will tackle the questions. Always start with the one you feel most
confident about and take time to choose the questions you will answer in sections with choice.

Read the requirements carefully: focus on mark allocation, question words (see below) and
potential overlap between requirements.

Identify and make sure you pick up the easy marks available in each question.
Effective layout

Present your numerical solutions using the standard layouts you have seen. Show and reference
your workings clearly.

With written elements try and make a number of distinct points using headings and short
paragraphs. You should aim to make a separate point for each mark.

Ensure that you explain the points you are making ie why is the point a strength, criticism or
opportunity?

Give yourself plenty of space to add extra lines as necessary, it will also make it easier for the
examiner to mark.
Common terminology
State
Define
Describe
Distinguish
Explain
Identify
Illustrate
Calculate/compute
Demonstrate
Prepare
Analyse
Compare and contrast
Discuss
Produce
Advise
Evaluate
Recommend
Express, fully or clearly, the details of/facts of
Give the exact meaning of
Communicate the key features of
Highlight the differences between
Make clear or intelligible/state the meaning of
Recognise, establish or select after consideration
Use an example to describe or explain something
To ascertain or reckon mathematically
To prove with certainty or to exhibit by practical means
To make or get ready for use
Examine in detail the structure of
Show the similarities and/or differences
To examine in detail by argument
To create or bring into existence
To counsel, inform or notify
To appraise or assess the value of
To advise on a course of action
2
Formulae sheet
Present value table
Present value of 1 ie (1+r)–n
where r = discount rate
n = number of periods until payment
Discount rates (r)
Periods
(n)
1
2
3
4
5
1%
0.990
0.980
0.971
0.961
0.951
2%
0.980
0.961
0.942
0.924
0.906
3%
0.971
0.943
0.915
0.888
0.863
4%
0.962
0.925
0.889
0.855
0.822
5%
0.952
0.907
0.864
0.823
0.784
6%
0.943
0.890
0.840
0.792
0.747
7%
0.935
0.873
0.816
0.763
0.713
8%
0.926
0.857
0.794
0.735
0.681
9%
0.917
0.842
0.772
0.708
0.650
10%
0.909
0.826
0.751
0.683
0.621
6
7
8
9
10
0.942
0.933
0.923
0.914
0.905
0.888
0.871
0.853
0.837
0.820
0.837
0.813
0.789
0.766
0.744
0.790
0.760
0.731
0.703
0.676
0.746
0.711
0.677
0.645
0.614
0.705
0.665
0.627
0.592
0.558
0.666
0.623
0.582
0.544
0.508
0.630
0.583
0.540
0.500
0.463
0.596
0.547
0.502
0.460
0.422
0.564
0.513
0.467
0.424
0.386
11
12
13
14
15
0.896
0.887
0.879
0.870
0.861
0.804
0.788
0.773
0.758
0.743
0.722
0.701
0.681
0.661
0.642
0.650
0.625
0.601
0.577
0.555
0.585
0.557
0.530
0.505
0.481
0.527
0.497
0.469
0.442
0.417
0.475
0.444
0.415
0.388
0.362
0.429
0.397
0.368
0.340
0.315
0.388
0.356
0.326
0.299
0.275
0.350
0.319
0.290
0.263
0.239
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
1
2
3
4
5
0.901
0.812
0.731
0.659
0.593
0.893
0.797
0.712
0.636
0.567
0.885
0.783
0.693
0.613
0.543
0.877
0.769
0.675
0.592
0.519
0.870
0.756
0.658
0.572
0.497
0.862
0.743
0.641
0.552
0.476
0.855
0.731
0.624
0.534
0.456
0.847
0.718
0.609
0.516
0.437
0.840
0.706
0.593
0.499
0.419
0.833
0.694
0.579
0.482
0.402
6
7
8
9
10
0.535
0.482
0.434
0.391
0.352
0.507
0.452
0.404
0.361
0.322
0.480
0.425
0.376
0.333
0.295
0.456
0.400
0.351
0.308
0.270
0.432
0.376
0.327
0.284
0.247
0.410
0.354
0.305
0.263
0.227
0.390
0.333
0.285
0.243
0.208
0.370
0.314
0.266
0.225
0.191
0.352
0.296
0.249
0.209
0.176
0.335
0.279
0.233
0.194
0.162
11
12
13
14
15
0.317
0.286
0.258
0.232
0.209
0.287
0.257
0.229
0.205
0.183
0.261
0.231
0.204
0.181
0.160
0.237
0.208
0.182
0.160
0.140
0.215
0.187
0.163
0.141
0.123
0.195
0.168
0.145
0.125
0.108
0.178
0.152
0.130
0.111
0.095
0.162
0.137
0.116
0.099
0.084
0.148
0.124
0.104
0.088
0.074
0.135
0.112
0.093
0.078
0.065
3
Annuity table
Present value of an annuity of 1 ie
1  (1  r)n
r
where r = discount rate
n = number of periods
Interest rates (r)
(n)
1
2
3
4
5
1%
0.990
1.970
2.941
3.902
4.853
2%
0.980
1.942
2.884
3.808
4.713
3%
0.971
1.913
2.829
3.717
4.580
4%
0.962
1.886
2.775
3.630
4.452
5%
0.952
1.859
2.723
3.546
4.329
6%
0.943
1.833
2.673
3.465
4.212
7%
0.935
1.808
2.624
3.387
4.100
8%
0.926
1.783
2.577
3.312
3.993
9%
0.917
1.759
2.531
3.240
3.890
10%
0.909
1.736
2.487
3.170
3.791
6
7
8
9
10
5.795
6.728
7.652
8.566
9.471
5.601
6.472
7.325
8.162
8.983
5.417
6.230
7.020
7.786
8.530
5.242
6.002
6.733
7.435
8.111
5.076
5.786
6.463
7.108
7.722
4.917
5.582
6.210
6.802
7.360
4.767
5.389
5.971
6.515
7.024
4.623
5.206
5.747
6.247
6.710
4.486
5.033
5.535
5.995
6.418
4.355
4.868
5.335
5.759
6.145
11
12
13
14
15
10.368
11.255
12.134
13.004
13.865
9.787
10.575
11.348
12.106
12.849
9.253
9.954
10.635
11.296
11.938
8.760
9.385
9.986
10.563
11.118
8.306
8.863
9.394
9.899
10.380
7.887
8.384
8.853
9.295
9.712
7.499
7.943
8.358
8.745
9.108
7.139
7.536
7.904
8.244
8.559
6.805
7.161
7.487
7.786
8.061
6.495
6.814
7.103
7.367
7.606
1
2
3
4
5
11%
0.901
1.713
2.444
3.102
3.696
12%
0.893
1.690
2.402
3.037
3.605
13%
0.885
1.668
2.361
2.974
3.517
14%
0.877
1.647
2.322
2.914
3.433
15%
0.870
1.626
2.283
2.855
3.352
16%
0.862
1.605
2.246
2.798
3.274
17%
0.855
1.585
2.210
2.743
3.199
18%
0.847
1.566
2.174
2.690
3.127
19%
0.840
1.547
2.140
2.639
3.058
20%
0.833
1.528
2.106
2.589
2.991
6
7
8
9
10
4.231
4.712
5.146
5.537
5.889
4.111
4.564
4.968
5.328
5.650
3.998
4.423
4.799
5.132
5.426
3.889
4.288
4.639
4.946
5.216
3.784
4.160
4.487
4.772
5.019
3.685
4.039
4.344
4.607
4.833
3.589
3.922
4.207
4.451
4.659
3.498
3.812
4.078
4.303
4.494
3.410
3.706
3.954
4.163
4.339
3.326
3.605
3.837
4.031
4.192
11
12
13
14
15
6.207
6.492
6.750
6.982
7.191
5.938
6.194
6.424
6.628
6.811
5.687
5.918
6.122
6.302
6.462
5.453
5.660
5.842
6.002
6.142
5.234
5.421
5.583
5.724
5.847
5.029
5.197
5.342
5.468
5.575
4.836
4.988
5.118
5.229
5.324
4.656
4.793
4.910
5.008
5.092
4.486
4.611
4.715
4.802
4.876
4.327
4.439
4.533
4.611
4.675
4
Economic Order Quantity
=
2Co D
Ch
Miller – Orr Model
Return point = Lower limit + ( 13  spread)
 3 × transaction cost × variance of cash flows 
Spread = 3  4

Interest rate


The Capital Asset Pricing Model
E(ri)= Rf + i (E (rm) – Rf )
The Asset Beta Formula

  Vd (1  T)
Ve
βe  + 
β 
d
 (Ve  Vd (1  T))   (Ve  Vd (1  T)) 

a = 
The Growth Model
Po =
Do 1+ g 
Re  g
Re 
Do 1+ g 
g
Po
Gordon's Growth Approximation
g = br
The Weighted Average Cost of Capital
 Ve 
 Vd 
WACC = 
 ke + 
 kd(1–T)
 Ve  Vd 
 Ve  Vd 
The Fisher Formula
(1 + i) = (1 + r)(1 + h)
Purchasing Power Parity and Interest Rate Parity
S1 = S0 
(1+ hc )
(1+ hb )
F0 = S0 
(1+ i c )
(1+ i b )
5
1
3
Section A – ALL 15 questions are compulsory and MUST
be attempted
Each question is worth 2 marks
1
2
In relation to hedging interest rate risk, which of the following statements is correct?
A
Smoothing is where liabilities and assets with a common interest rate are combined.
B
An interest rate futures contract grants the buyer the right but not the obligation to complete the
contract.
C
Forward rate agreements are exchange-traded contracts.
D
Interest rate options allow the buyer to take advantage of favourable interest rate movements.
M plc is evaluating two possible investment projects and uses a 10% discount rate to determine their net
present values.
A
B
Investment
$'000
$'000
Initial Investment
400
450
Incremental cash flows: Year 1
100
130
Year 2
120
130
Year 3
140
130
Year 4
120
130
Year 5*
100
150
Net present value
39
55
*includes $20,000 residual value for each investment project
What is the discounted payback period of investment B?
3
A
3.33 years
B
3.46 years
C
4.37 years
D
4.41 years
The following statements relate to market efficiency.
1
An analysis taking a chartist approach in an efficient market would not be able to make any
statistically significant gains.
2
If a market is efficient, of any type, share prices are said to follow a random walk.
Are the statements true or false?
A
Both statements are true.
B
Both statements are false.
C
Statement 1 is true and statement 2 is false.
D
Statement 1 is false and statement 1 is true.
6
4
5
6
What is the impact on an economy of a policy of high interest rates?
1
An appreciation of the currency's exchange rate
2
An increase in consumer expenditure
A
1 only
B
2 only
C
Both 1 and 2
D
Neither 1 nor 2
Which of the following statements concerning shareholder wealth are correct?
1
Wealth of shareholders is increased by dividends received and capital gains on shares owned.
2
Share prices may increase irrespective of the decisions of managers.
3
A rise in earnings per share will cause an increase in shareholder wealth.
A
1 and 2 only
B
1 and 3 only
C
2 and 3 only
D
1, 2 and 3
In not-for-profit businesses and state-run entities, a value-for-money audit can be used to measure
performance. It covers three key areas: economy, efficiency and effectiveness.
Which of the following could be used to describe effectiveness in this context?
7
8
A
Avoiding waste of inputs
B
Achieving agreed targets
C
Achieving a given level of profit
D
Obtaining suitable quality inputs at the lowest price
Which of the following statements about money market instruments are true?
1
A company can use the money market to manage exposure to foreign currency risk.
2
Options are interest-bearing instruments where the investor receives face value plus interest at
maturity.
3
Certificates of deposit are non-negotiable.
A
1 only
B
1 and 3 only
C
2 and 3 only
D
1, 2 and 3
Which of the following statements about gearing are true?
1
Financial gearing refers to the variability of returns caused by debt interest and therefore financial
risk is often measured by the debt to equity ratio.
2
Operational gearing refers to the variability of returns caused by the fixed costs of the business
operation, and therefore business risk is best measured by operating profit to sales.
A
Both statements are true.
B
Both statements are false.
C
Statement 1 is true and statement 2 is false.
D
Statement 2 is true and statement 1 is false.
7
9
SK sells bathroom fittings throughout the country in which it operates. In order to obtain the best price, it
has decided to purchase all its annual demand of 10,000 shower units from a single supplier. RR has
offered to provide the required number of showers each year under an exclusive long-term contract.
Demand for shower units is at a constant rate all year. The cost to SK of holding one shower unit in
inventory for one year is $4 plus 3% of the purchase price.
RR is located only a few miles from the SK main showroom. It has offered to supply each shower unit at
$400 with a transport charge of $200 per delivery. It has guaranteed such a regular and prompt delivery
service that SK believes it will not be necessary to hold any safety inventory (that is buffer inventory) if it
uses RR as its supplier.
What is the optimal order size, assuming that RR is chosen as the sole supplier of shower units for SK?
10
11
A
632 units
B
500 units
C
985 units
D
1,000 units
Which of the following statements concerning financial management are correct?
1
It considers how investments will be financed.
2
It considers how much profit should be distributed to shareholders.
3
It presents a picture of past operations and the state of affairs at the period end.
A
1 and 2 only
B
1 and 3 only
C
2 and 3 only
D
1, 2 and 3
HP Co has paid a recent dividend of 30c per share. Dividends are expected to grow in the future at 5%
per annum. The shareholders of HP Co require a return of 17% per annum.
What is the value per share?
12
A
$1.850
B
$2.625
C
$2.925
D
$3.750
A German manufacturing company borrows $1m US dollars. Interest is payable every six months in
dollars. The following statements relate to the foreign currency risk.
1
Translation risk occurs on each six month interest payment.
2
When the company states its loan in euros at the year end for presentation in the financial
statements, economic risk arises.
Are the statements true or false?
A
Statement 1 is true and statement 2 is false.
B
Statement 2 is true and statement 1 is false.
C
Both statements are true.
D
Both statements are false.
8
13
C&H Statement of profit or loss for the year ended 30 June 20X4
$'000
280
140
140
Revenue
Cost of goods sold
Gross profit
Assume all sales and all purchases are on credit and that there are no returns or discounts. All trade
payables relate to cost of sales.
C&H Statement of financial position as at 30 June 20X4 (extract)
$'000
Current assets
Inventory
Trade receivables
Cash
77
56
25
158
Current liabilities
Trade payables
Accrued interest
Income tax
42
23
86
151
Inventory balance at 30 June 20X3 was $77,000.
Assume a 365 day year.
What is the length of the working capital cycle in 20X4 (to 1 dp)?
14
A
104.3 days
B
105.0 days
C
164.3 days
D
383.3 days
The following statements relate to the money markets and capital markets.
1
Money market instruments are only traded over the counter between institutional investors.
2
Capital markets are markets for medium term and long term finance.
Are the statements true or false?
15
A
Statement 1 is true and statement 2 is false.
B
Statement 2 is true and statement 1 is false.
C
Both statements are true.
D
Both statements are false.
A company has issued a 12% irredeemable bond quoted at $95 ex-interest. The rate of corporation tax is
30%.
What is the post-tax cost to the company of this bond?
A
8.84%
B
12.63%
C
3.79%
D
8.40%
(30 marks)
9
Section B – ALL 15 questions are compulsory and MUST
be attempted
Each question is worth 2 marks
The following scenario relates to questions 16–20
FKP is a wholesale distributor of non-perishable grocery items to a range of retailers. The following statement of
financial position information is available for the last two years.
Year ended 31 December
Year 2
Year 1
(most recent year)
$
$
Current assets
Trade payables
Trade receivables
Cash and cash equivalents
Inventory
650,000
700,000
250,500
400,000
595,000
750,000
275,500
468,000
During Year 2 credit sales averaged $270,000 per month and cost of sales averaged $210,000 per month.
The industry average operating cycle is 50 days.
Assume a 365 day year.
16
17
18
19
What are the trade receivables and trade payables days for Year 2, using average balances?
Receivables
Payables
A
84 days
86 days
B
105 days
70 days
C
108 days
67 days
D
82 days
90 days
What is the cash operating cycle for Year 2?
A
58 days
B
55 days
C
104 days
D
61 days
FKP's cash operating cycle is longer than the industry average. What might this indicate?
A
FKP pays its suppliers more quickly than the industry average.
B
FKP holds less inventory than the industry average.
C
FKP is undercapitalised.
D
FKP's debtors pay more quickly than the industry average.
FKP is concerned about overtrading in the future. Which of the following is a symptom of overtrading?
A
The operating cycle falls.
B
The payment period to creditors shortens.
C
Inventory turnover slows down.
D
Debtors pay more quickly.
10
20
FKP decides to offer a 5% early settlement discount that 75% of customers take up – the impact of this
discount is that these customers will pay a month earlier than they are currently paying. FKP pays 8% per
annum for its overdraft facility. What impact will this discount have on the cash operating cycle and
reported profits?
Cash operating cycle
Reported profits
A
Unaffected
Increase
B
Reduce
Reduce
C
Unaffected
Reduce
D
Reduce
Increase
The following scenario relates to questions 21–25
GSF, a company based in Westland, has agreed a sale to a company in Germany. The currency in Westland is
the Westland dollar (W$), and the currency in Germany is the Euro (€). The sale is on three months' credit terms
and has a value of €1,650,000. Assume that the date is currently 15 June.
Currency Market Rates on 15 June
Spot rate (€ per W$)
Three months forward rate (€ per W$)
Expected spot rate in three months' time
1.2558 +/– 0.0006
1.2567 +/– 0.0034
1.2561 +/– 0.0045
Money Market Rates (per annum) on 15 June
Borrowing
4.0%
1.4%
Westland $
Germany
21
Deposit
2.6%
1.0%
GSF is concerned that the cash it is due to receive from overseas sales will not be as expected, due to
exchange rate movements.
What type of risk is this?
22
23
A
Translation risk
B
Economic risk
C
Business risk
D
Transaction risk
Calculate the amount in W$ that GSF will expect to receive if a forward contract is used.
A
1,309,420
B
1,308,900
C
1,316,524
D
1,313,903
Which of the following statements are true of forward contracts?
1
They are a binding contract.
2
They can be sold on to someone else.
3
They fix the rate for a future transaction.
4
They are flexible once agreed.
A
1, 2 and 4 only
B
1 and 3 only
C
1, 2, 3 and 4
D
3 only
11
24
What are the appropriate three month interest rates for GSF to use if the company hedges the € receipt
using a money market hedge?
Deposit rate
25
Borrowing rate
A
2.6%
1.4%
B
0.25%
1.0%
C
0.65%
0.35%
D
1.0%
4.0%
Calculate the amount in W$ that GSF will expect to receive if a money market hedge is used.
A
1,317,831
B
1,317,202
C
1,342,721
D
1,303,562
The following scenario relates to questions 26–30
HSD is a well established unlisted services company with a strong reputation for the quality of its staff. The four
directors (and only shareholders) are considering selling the company and have had enquiries from several
interested parties.
One of these enquiries is from VVS Co, a similar listed services company with branches across the country.
The following information is available on both VVS and HSD.
Number of shares issued (millions)
Earnings per share (cents)
Dividend per share (cents)
Tangible net asset value ($m)
Goodwill ($m)
Share price (cents)
Expected annual rate of growth in earnings (%)
Expected annual rate of growth in dividends (%)
Cost of equity (%)
VVS
25
45
25
26
10
450
3
2
13
HSD
1.2
60
30
4
3
2.5
3
Notes
1
Forecast annual growth rates for HSD have been internally generated, while the forecast rates for VVS
have been estimated by independent third parties.
2
Net asset values are book values. HSD has non-current assets of $2m which are valued at $0.75m below
net realisable value.
26
On a realisable basis, what is the NAV valuation of HSD Co?
A
$4m
B
$6.25m
C
$4.75m
D
$7.75m
12
27
28
29
30
Using estimated annual earnings next year, and applying the P/E multiple that currently applies to VVS,
what is the valuation of HSD?
A
$7.38m
B
$13.284m
C
$3.6m
D
$7.20m
Why is it rarely appropriate to value a company such as HSD based upon its asset values alone?
A
The market values of assets are likely to increase before a deal can be finalised.
B
A large part of a service company's value lies in the skill and knowledge of its personnel.
C
Shareholders will be unwilling to sell a company for its asset value alone.
D
Market values of assets rarely bear a close relationship to their earning capacities.
What is the valuation of HSD using the dividend valuation model?
A
$3.90m
B
$3.60m
C
$3.71m
D
$3.09m
The dividend valuation model is based upon a number of assumptions. Which of the following is NOT one
of these assumptions?
A
The current year dividend (D0 ) does not vary significantly from the trend.
B
All influences on share prices are taken into account.
C
Dividends show a consistent rate of growth.
D
Investors act rationally and homogenously.
13
Section C – BOTH questions are compulsory and MUST
be attempted
31
PLK Co is considering investing in new machinery as part of a launch of a new product, the 'Quago'. The
new machine is expected to have a useful life of four years and could be bought for $1,000,000, half of
which would be paid immediately with the rest payable in a year's time. The scrap value of the machine
after four years would be $30,000. Sales revenue and variable costs for the Quago in each of the four
years are expected to be as follows. Inflation has been included.
Year
1
Production and sales
(units/year)
Sales revenue
Variable cost
2
3
4
35,000
53,000
75,000
36,000
1,081,500
1,686,990
2,458,500
1,215,720
588,000
934,920
1,389,000
700,200
Fixed costs relating to the project will be $10 per unit in the first year. The fixed cost is expected to remain
unchanged in price terms throughout the project, and no inflation is expected.
Producing and selling the Quago will mean increased investment in working capital is required, but this
will be recovered at the end of the project. The requirement at the beginning of each year is as follows.
Year
1
Working capital requirement
100,000
2
3
4
120,000
150,000
110,000
PLK Co pays tax one year in arrears at an annual rate of 30% and can claim tax-allowable depreciation
on a 25% reducing balance basis. The first claim for tax allowance on the purchase cost will occur at the
end of the first year, and will relate to the full purchase cost of the machinery. A balancing allowance is
claimed at the end of the final year of operation.
PLK Co uses a nominal (money terms) after-tax cost of capital of 15% for investment appraisal purposes.
Required
(a)
Calculate the following values for the proposed investment in the new machinery, and comment
upon your findings:
(i) Net present value
(8 marks)
(ii) Internal rate of return
(3 marks)
(b)
What are the strengths and weaknesses of the internal rate of return method as a basis for PLK's
investment appraisal?
(5 marks)
(c)
Some members of the board of PLK are wondering why ROCE and payback period have not been
considered for this investment proposal. Discuss the reasons why net present value is
theoretically preferred to these other investment appraisal methods.
(4 marks)
(Total = 20 marks)
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32
FlyHi operates a low-cost airline and is a listed company. In comparison to its major competitors it is
relatively small, but it has expanded significantly in recent years. The shares are held mainly by large
financial institutions.
The following are extracts from FlyHi's budgeted Statement of Financial Position at 31 May 20X2.
$m
50
50
200
300
Ordinary shares of $0.50
Reserves
9% loan notes 20X5 (at nominal value)
Dividends have grown in the past at 3% a year, resulting in an expected dividend of $1 per share to be
declared and paid on 31 May 20X2. Dividends are expected to grow at 4% a year from 1 June 20X2 for
the foreseeable future. The price per share is currently $10.40 ex div, and this is not expected to change
before 31 May 20X2.
The existing loan notes are due to be redeemed at par on 31 May 20X5. The market value of these loan
notes at 1 June 20X2 is expected to be $100.84 (ex interest) per $100 nominal. Interest is payable
annually in arrears on 31 May and is allowable for tax purposes. Tax is payable on profits at a rate of
30%. Assume taxation is payable at the end of the year in which the taxable profits arise.
New finance
The company has now decided to purchase three additional aircraft at a cost of $10m each. The board
has decided that the new aircraft will be financed in full by an 8% bank loan on 1 June 20X2.
Required
(a)
Calculate the expected weighted average cost of capital of FlyHi at 31 May 20X2.
(b)
Explain the impact of the new bank loan on FlyHi's:
(i)
(ii)
(iii)
(c)
Cost of equity
Cost of debt
Weighted average cost of capital (using the traditional model)
(8 marks)
(3 marks)
(2 marks)
(3 marks)
Explain why FlyHi might decide to raise capital in the form of a convertible debt issue rather than
straight equity or debt.
(4 marks)
(Total = 20 marks)
15
Student self-assessment
Having completed this paper take a few minutes to consider what you did well and what you found difficult. Use
this as a basis to focus your future study on effectively improving your performance.
Common problems
Future emphasis if you answer Yes
Timing and planning for all Sections
Did you miss out any questions?
Y/N
Attempt all questions.
For multiple choice questions in Sections A and B, it is worth
making a guess at the correct answer.
Did you finish too early?
Y/N
Make sure you deal with all the information given in the
questions.
Use the extra time to go back over your answers.
Did you overrun?
Y/N
Focus on allocating your time better.
Practise questions under strict timed conditions.
If you get behind leave space and move on.
Interpreting the questions?
Y/N
Learn the meaning of question words (inside front cover).
Learn subject jargon (study text glossary).
Read questions carefully noting all the parts.
Practise as many questions as possible.
Understanding the subject?
Y/N
Review your notes/text.
Work through easier examples first.
Contact a tutor for help.
Remembering the notes/Text?
Y/N
Quiz yourself constantly as you study. You need to develop your
memory as well as your understanding of a subject.
Was your answer difficult to follow?
Y/N
Use headings and subheadings.
Use numbering sequences when identifying points.
Leave space between each point.
Did you fail to explain each point?
Y/N
Show why the point identified answers the question set.
Did you include irrelevant information? Y/N
Focus on developing a logical structure to your answer.
Were some of your workings unclear? Y/N
Give yourself time and space to make the marker's job easy.
Content in all Sections
Did you struggle with:
Layout in Section C
16
17
18
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