TARC ACCA 2005: tips june 2005 paper 3.7 Strategic Financial Management

~~~~~~~~~~~~~~~Motivation Quote~~~~~~~~~~~~~~~~ ~~~~~~~~~~Sometimes it takes a lot of rain before you get your rainbow!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~Just FOcus On The Key Topics That You Know And Ignore What You Don't!!!!!!~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~The glory is not in never failing but in rising again everytime you fall!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~YOU MAKE THE FAILURE COMPLETE WHEN YOU STOP TRYING!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~

Wednesday, May 18, 2005

tips june 2005 paper 3.7 Strategic Financial Management

source:- BPP

Section A
Question 1 may feature a question on mergers & acquisitions. This could include valuations based on several techniques as well as changes in shareholder wealth post-merger.
Try out: Q34 Oakton, Q35 Minprice

Question 2 could revolve around interest rate management, specifically hedging.
Try out:Q56 Projections, Q58 PZP

Section B
Subjects likely to feature include:
• Adjusted Present Value - Q32 Strayer
• International Financing - Q61 Trade Blocs, Q62 IMF, Q63 Beela
• Dividend Policy - Q76 Serty, Q77 Tigger
• Corporate Objectives - Q1 Stakeholders, Q2 International Corporate Governance

source: LCA

• Acquisition decision/MBO
• Foreign exchange risk
• Capital structure
• Investment appraisal/FDI
• Interest rate collars

Source: FTC UK

Section A:
1) Merger and Acquisitions - Company Valuation (NAV, DVM and P/E Methods) and Management Buy
Outs. Share for Share exchange, Going Private.
2) Risk management - Interest rate risk / Currency Risk
3) Overseas NPV - including the measurement of past performance and ethics.
4) Investment Appraisal - WACC, Risk adjusted WACC, The management of cash flows.

Section B.
1) Dividend Policy/Term Structure of Interest rate
2) Portfolio Theory and CAPM – summary and alpha tables
3) International economics – I.M.F., Political Risk, Foreign Exchange Rate Systems, Balance of payments deficits. Control of foreign subsidiaries, Treasury Management.
4) The Black Scholes Option Valuation Model – the application of the Put Call Parity Rule

Source: FTC S'pore
Lecturers - Mr Nicholas Blain/Mr Saminathan

- Mergers & Acquisitions, Restructuring
- Valuations
- International investment appraisal
- Interest rate risk and hedging (futures/options)
- theory of CAPM
- Capital structure, inc Modigliani & Miller
- Corporate governance
- WTO and free trade
- International trade risks

Health Warning! The examiners deliberately try to avoid question spotting. Just because a question featured last time, doesn’t mean it won’t feature this time. Use the tips as areas to have a good look at, but remember that no one knows what is in the exam, apart from the examiner. Your safest bet is to achieve good syllabus coverage in your revision, as the examiner aims to do in the exam.

Disclaimer : All the above are reproduced materials,all the copyright remained to the original sources and i shall not take any responsibility towards the accuracy and reliance on the tips.