Part Knowledge point Past Paper Question Requirement Marks

Jun-12 Q3(c) - capital structure Discuss 9

1 The role of the senior
Sep/Dec-17 Q1(a) - capital structure - benefit of debt financing Discuss 7
financial advisor
Mar/Jun-18 Q2(b) - shareholders, convertible loan notes Discuss 8
Dec-09 Q2(a)(b) - risks, EVA, ratios Outline, Summarise 18
Dec-10 Q4 - dividend capacity Calculate, comment and suggest 20
Jun-11 Q5 - issue to commercialise new products and mitigation Discuss 17
Dec-11 Q4(b)(c) - gearing Calculate and discuss 14
Jun-12 Q2(a) - EPS,gearing Estimate, discuss 20
Jun-12 Q5(a) - risks and mitigation Discuss 15
Jun-13 Q1(a)(iv) - issuing shares and listing Advise, discuss, explain and assess 12
Jun-13 Q4 - dividend, financing, risk management policy, share buyback Discuss, evaluate, calculate 25
Dec-13 Q1(b)(iii) - business risk Discuss 14
Dec-14 Q4 - EVA, ratio analysis Discuss, evaluate 25
Jun-15 Q3(b) - ratio,gearing Estimate 12
2 Financial strategy
Mar/Jun-16 Q1(b)(i)(iii)(iv) - dividend capacity, financing Estimate 26
formulation
Sep/Dec-16 Q1(a)(c) - bizz & fin risk, risk mitigation & diversification, risk mgmt Explain 13
Sep/Dec-16 Q3(a) - dividend policies Calculate, discuss 15
Mar/Jun-17 Q1(c) - listing Discuss 4
Mar/Jun-17 Q2 - source of finance, risk and mitigation, behavioural finance Discuss, describe, explain, assess 25
Sep/Dec-17 Q3 - Financial performance, ratios and trends, financing decision Evaluate, calculate, discuss 25
Mar/Jun-18 Q3(a) Dividend capacity and policies Estimate, discuss 25
Sep-18 Q2(a) - performance evaluation (ratios and trend), behavioural factors Evaluate 25
Dec-18 Q3(b) - long-term finance policy Discuss 10
Sep/Dec-19 Q1(d) - risk management Discuss 6
Part A Sep/Dec-19 Q2(a)(b) - dividend capacity, dividend policy Calculate, discuss 17
Role of the Mar-20 Q3(b) - capital investment monitoring Explain, suggest 8
senior financial Jun-09 Q4 - ethical issues Advise 20
advisor Dec-11 Q5 - TBL Explain, discuss 18
Jun-13 Q1(b) - ethical issues Discuss 8
3 Ethical and Mar/Jun-16 Q3(b) - stakeholder, ethical issues Discuss 6
governance issues Mar/Jun-19 Q1(c) - sustainability and ethical issues Discuss, advise 10
Mar/Jun-19 Q3(c) - communication to shareholders and stakeholders Discuss 5
Sep/Dec-19 Q2(c) - governance and ethical issues for dividend and remuneration Discuss 8
Sep/Dec-20 Q1(c) - employee remuneration Discuss 8
Dec-09 Q4 - Global debt market, loan syndication vs bond issue, capital investment and global Advise, assess 20
economic cycle
Jun-10 Q3 - tranching, securitisation, sensitivity Calculate, explain and discuss 20
Dec-10 Q5 - Joint venture advantages and disadvantages Discuss 20
Jun-12 Q5(b) - dark pool trading Explain 5
Dec-12 Q5 - IMF, EU,austerity measure,risk Explain, suggest, discuss 20
4a Trading in a
multinational
environment
4a Trading in a Dec-13 Q1(a) - WTO Discuss 9
multinational Dec-14 Q1(b) - EU Discuss 4
environment Dec-14 Q3(a) - EU, free trade area Discuss 5
Jun-15 Q1(a) - subsidiary vs licensing Discuss 5
Jun-15 Q2(a) - dark pool Explain 5
Sep/Dec-15 Q4(a)(b) - tranching,securitisation Calculate, discuss 17
Mar/Jun-16 Q4(c) - World bank, IDA Discuss 4
Jun-14 Q1(d)(ii) - agency issue Discuss 9
4b Planning in a Dec-14 Q3(c) - legal risk Discuss 7
multinational Mar/Jun-18 Q4(c) - transfer price Evaluate 6
environment Specimen exam Q1(d) - risk management and agency issue Discuss 22
(Sep18)
 Part Knowledge point Past Paper Question Requirement Marks
Jun-09 Q5 - IRR, Profitability index (single period capital rationing) Calculation, estimate and advise 20
Jun-09 Q1 - NPV, sensitivity analysis, discounted payback period Project evaluation, estimate & recommend 28
Dec-09 Q5(c) - VAR Estimate 6
Jun-10 Q1 - NPV, uncertainties, sensitivity analysis, Monte Carlo simulation Estimate, discuss, explain 28
Jun-12 Q4(b)(c) - IRR, MIRR and VAR Calculate, recommend, estimate 12
5 Discounted cash flow Dec-12 Q4 - sensitivity analysis and Multi- period capital rationing Calculate and comment, explain 20
techniques Dec-13 Q1(b)(i) - NPV and assumption Calculate and recommend 14
Dec-14 Q3(b) - IRR, MIRR, VAR Calculate and recommend 13
Sep/Dec-16 Q2 - NPV and duration, sensitivity analysis Evaluate, calculate, discuss 25
Specimen (Sep18) Q1(c) - modified duration Calculate and explain 7
Mar/Jun-19 Q1(b)(i)(iii) - NPV & assumptions Estimate, assess 22
Mar-20 Q3(a) - NPV, expected value, Evaluate, calculate, recommend 17
Dec-09 Q3 - Option valuation and assumption Estimate and discuss 20
Jun-11 Q4 - option to delay and valuation Estimate and discuss 17
Jun-12 Q1(iii) - option to delay valuation Estimate 8
6 Application of option
Dec-13 Q1(b)(ii) - option to abandon and assumption Calculate and recommend 9
pricing theory in
Jun-14 Q4(a) - option Discuss, explain 11
investment decision
Mar/Jun-16 Q4(a)(b) - option to expand Calculate, assess, explain 21
Mar/Jun-18 Q1(b) - real option Discuss 5
Mar/Jun-19 Q1(a)(b)(ii) - real option Discuss, estimate 14
Dec-10 Q2 - APV, appropriateness and assumptions Evaluate, discuss and explain 25
Jun-11 Q3- Macaulay duration Estimate and discuss 17
Jun-12 Q4(a) - CAPM, geared beta and WACC Calculate 8
Part B Dec-12 Q1(a)(b) - CAPM, geared beta and WACC Calculate and comment, explain 20
Jun-13 Q1(a) (i)- ungeared and regeared Calculate and explain 7
Advanced 7a Impact of financing Dec-13 Q4(c) - Islamic finance (Musharaka,Mudaraba) Discuss 12
investment on investment decisions Jun-14 Q1(c) - modified duration Calculate and explain 7
appraisal and adjusted present Jun-14 Q2 - APV Calculate and comment 25
value Dec-14 Q2(c) - Islamic finance (Salam) Discuss 4
Sep/Dec-15 Q4(c) - Islamic finance (Sukuk,Mudaraba) Discuss 8
Sep/Dec-16 Q1(b) - cost of capital and forecast financial position Estimate, discuss 37
Mar/Jun-17 Q4 - bond valuation, credit rating Calculate, discuss 25
Sep/Dec-17 Q1(b) - bond valuation, Macaulay duration, credit rating, forecast financial position, Estimate, comment and discuss 43
impact on equity holder, debt holder
Mar/Jun-18 Q2(a) - APV Calculate, conclude 17
Specimen (Sep18) Q2 - APV Calculate and comment 25
Dec-18 Q3(a) - APV Calculate, conclude 15
Sep/Dec-19 Q1(a)(b) - APV vs NPV, Estimate APV and discuss the assumptions, Duration Discuss, estimate, evaluate and justify 40
Sep/Dec-20 Q1(b) - Ba formula, CAPM,WACC,reaction of equity and bondholder Estimate, discuss 24
Dec-11 Q3 - bond yield and valuation Calculate, advise, briefly explain 18

7b Valuation and the

use of free cash flows
 Jun-12 Q1(i) - valuation using free cash flow Calculation 7
7b Valuation and the Jun-13 Q1(a)(ii) - valuation Calculation 14
use of free cash flows Jun-14 Q4(b) - Valuation (option pricing) Discuss 9
Sep/Dec-16 Q3(b) - market capitalisation vs dividend valuation Calculate, discuss 10
Sep/Dec-20 Q1(b) - bond yield and valuation Estimate, discuss 7
Dec-11 Q1 - international investment and APV Evaluate and discuss 39
Jun-15 Q1(b) - international project Evaluate, discuss, recommend 45
8 International
Mar/Jun-16 Q1(a) - purchasing power parity Explain 6
investment and
Sep-18 Q1(a)(c)(ii) - international investment Discuss, estimate 14
financing decisions
Sep/Dec-19 Q1(c) - Economic risk and how to manage Discuss 4
Sep/Dec-20 Q2 - international investment Evaluate, explain, discuss
 Part Knowledge point Past Paper Question Requirement Marks
Jun-13 Q2(a) - synergy Discuss 9
Jun-14 Q3(a)(b) - organic growth vs Discuss 11
9 Acquisitions and Dec-14 Q1(a) - acquisition strategies Discuss 7
mergers versus other Mar/Jun-16 Q2(a) - acquisition adv.& disadv. Discuss 6
growth strategies Mar/Jun-17 Q1(a) - reverse takeover vs IPO Explain, discuss 9
Dec-18 Q1(d) - reverse takeover vs IPO Distinguish, discuss 8
Sep/Dec-19 Q3(a) - sources of financial synergy, overestimate synergy + action Discuss, comment 8
Dec-09 Q1 - Valuation - FCFE, terminal value, assumptions & uncertainties & option pricing Prepare CF forecast, estimate and advise 28
Jun-10 Q2 - Valuation - FCF, BSOP Estimate, explain, and discuss 32
Jun-11 Q1(i)(ii)(v)- M&A valuation, capital structure, defence strategy Evaluate, discuss, estimate, explain and ass 25
Jun-12 Q1(ii)(iv) - mergers and acquisitions valuation Estimate, discuss 16
Jun-13 Q2(b) - valuation and max acquisition premium Calculate 6
Dec-13 Q3(a)(b) - valuation of M&A (FCF) Estimate, comment, discuss 18
10 Valuation of Jun-14 Q3(c) - valuation of M&A Estimate, explain 14
acquisitions and mergers Dec-14 Q1(c) - valuation of M&A Estimate, evaluate 35
Sep/Dec-15 Q1(b) - valuation of M&A Estimate, assess, advise 30
Part C Mar/Jun-18 Q1(a)(b) - valuation of M&A, Compare, prepare a report, estimate, 37
Acquisitions and Specimen (Sep18) Q3 - synergies, acquisition premium Distinguish, discuss, calculate, explain 25
mergers Sep-18 Q3(a)(b) valuation of M&A and Estimate, evaluate 19
Dec-18 Q1(c)(i) - valuatiion of M&A Estimate 10
Mar-20 Q1(a)(b) - behavioural factors, valuation(P/E), WACC (combined co), value gain from acq Discuss, compare, calculate, estimate, 42
Dec-12 Q3 (b) - global regulatory framework Discuss 4
11 Regulatory
Sep/Dec-15 Q1(d) - takeover regulation Explain 6
framework and
Mar/Jun-18 Q1(d) - mandatory bid rule Discuss 8
processes
Sep/Dec-20 Q1(a) - defence strategies Discuss 7
Jun-11 Q1(iii)(iv) - financing acquisition Estimate and explain 7
Dec-12 Q3(a) - Financing M&A Estimate, comment 16
Jun-13 Q2(c) - acquisition payment method Calculate and justify 10
Dec-13 Q3(c) - financing acquisition Estimate and discuss 7
12 Financing mergers Mar/Jun-16 Q2(b)(c) - P/E ratio and EPS Calculate, comment 19
and acquisitions Sep-18 Q3(c) - source of finance Discuss 6
Dec-18 Q1(c)(ii)(iii) - % gain in value for cash, share-for-share, mixed offer and likely action Estimate, evaluate 19
Q3(b)(c) - share-for-share exchange offer, effect of cash and share-for- share offers on
Sep/Dec-19 Advise, calculate, discuss 17
the shareholders' wealth, and shareholders reaction
Mar-20 Q1(c) - factors determined offer finance and gearing Discuss 8
 Part Knowledge point Past Paper Question Requirement Marks
Dec-09 Q2(c)(d) - impact of acquisition on beta and Ke Estimate and evaluate 10
13 Financial
Jun-13 Q1(a)(iii)equity-for-debt Calculate and advise 5
reconstruction
Sep/Dec-15 Q3 - share repurchase, refinancing Prepare projected statement, evaluate 25
Jun-09 Q2 - Unbundling impact - SFP, EPS and WACC Comparative statement, estimate & evalua 32
Jun-10 Q4 - Issues of disposing division, risks involved Outline 20
Part D Dec-10 Q1 -cease, restructuring & MBO, financing and impact on the parties involved Evaluate, discuss and suggest 35
Corporate Dec-11 Q4(a) - MBO Discuss, calculate 4
reconstruction Dec-12 Q1(c) - demerger Explain 8
and Dec-13 Q4(a)(b) - disposal, demerger Calculate, advise, discuss 25
reorganisation Jun-15 Q2(b) - dispose Calculate and discuss 20
14 Business Jun-15 Q3(a)(c) - MBO,MBI Distinguish, discuss 13
reorganisation Sep/Dec-15 Q1(a)(c) - sell-off,MBI,disposing assets as defence strategy Distinguish, discuss 10
Mar/Jun-16 Q3(a) - disposing Evaluate 19
Mar/Jun-17 Q1(b) - restructuring - SFP, estimate value, impact on the parties Estimate, explain, discuss 37
Sep/Dec-17 Q2 - divest, impact on financial position, forecast EPS and WACC Calculate and evaluate 25
Dec-18 Q1(a)(b) - MBO vs MBI, portfolio restructuring and org restructuring Distinguish, discuss, explain 9
Mar/Jun-19 Q3(a)(b) - demerger, WACC and FCF valuation Discuss, calculate 20
 Part Knowledge point Past Paper Question Requirement Marks
Jun-12 Q2(b) - securitisation Explain 5
Dec-14 Q2(b) - centralised treasury dept Discuss 6
15 The role of the
Sep/Dec-17 Q4(b) - separate treasury function vs single global treasury function Discuss 7
treasury function in
Sep-18 Q1(d) - centralised and decentralised treasury department Discuss 7
multinationals
Mar/Jun-19 Q2(c) - treasury function Criticise 5
Mar-20 Q2(a) - hedging policy and communication to stakeholders Explain 7
Jun-09 Q3 - forward exchange rate, currency swap Estimate, outline 20
Jun-10 Q5 - Netting, advantages and disadvantages Calculate and discuss 20
Jun-11 Q2 - hedging (forward, futures, option), swap Advise and recommend, estimate, calculate 30
Dec-12 Q2 - transaction risk, translation risk, economic risk, hedging Explain, recommend, compute and discuss 27
Jun-13 Q3(a)(b) - hedging (forward, money market, options, netting) Calculate, advise and recommend 22
16 The use of financial Jun-14 Q1(a) - hedging (forward, futures, options) Calculate, advise 15
Jun-14 Q1(d) - management of foreign exchange exposure Discuss 9
derivatives to hedge
Sep/Dec-15 Q2(a) - netting Calculate, discuss 11
against foreign exchange
Mar/Jun-16 Q1(b)(ii) - hedging strategy Advise, recommend 14
risk
Mar/Jun-17 Q3 - currency swap, options Discuss, calculate, evaluate 25
Part E Mar/Jun-18 Q4(a)(b) - hedging (money market, futures, multilateral netting) Advise, calculate, discuss 19
Treasury and Specimen (Sep18) Q1(a) - hedging (forward, futures, options) Advise 15
advanced risk Sep-18 Q1(b)(c)(i)(iii) exchange traded option vs OTC option, forex hedging Discuss, estimate 25
management Dec-18 Q2 - exchange-traded derivatives (futures, option), forward vs OTC option, mark-to- Evaluate, discuss, explain, illustrate 25
techniques Mar-20 Q2(b)(c) - hedging (forward, futures, options), futures mark-to-market Recommend, calculate and explain 18
Dec-09 Q5(a)(b) - interest rate risk hedge, swap Evaluate, recommend and estimate 14
Dec-10 Q3 - hedge ratio Estimate, explain and discuss 20
Dec-11 Q2 - hedging interest rate risk (futures, options, collar), basis risk Discuss, recommend 25
Jun-12 Q3(a)(b)- swap Calculate, explain 11
Jun-13 Q3(d) - gamma Explain 3
Dec-13 Q2 - hedging (forward, futures, options), delta Calculate, recommend, discuss 25
Jun-14 Q1(b)(d) - swap, management of interest rate exposure Demonstrate, discuss 15
17 The use of financial
Jun-14 Q4(c) - vega and option value Explain 5
derivatives to hedge
Dec-14 Q2(a) - hedging (traded options, swaps) Calculate, discuss 15
against interest rate risk
Jun-15 Q4 - hedging (futures, options, collar), mark-to-market Calculate, discuss 25
Sep/Dec-15 Q2(b) - option, collars Calculate, comment 14
Sep/Dec-16 Q4 - estimate forward rates, swap Calculate, comment, advise. Discuss 25
Sep/Dec-17 Q4(a) - hedging - FRA, futures, options on futures Recommend, calculation and discussion 18
Specimen (Sep18) Q1(b) - Swap Demonstrate 6
Mar/Jun-19 Q2(a)(b) - options, swap, Calculation, comment, discuss 20
Sep/Dec-20 Q3 - Swap, Collar, greeks Calculate, comment, discuss, explain 25