Icaew fm - Study guides, Class notes & Summaries

ICAEW - FM EXAM QUESTIONS AND ACCURATE ANSWERS...

ICAEW – FM exam | Questions with 100% Correct Answers |Verified

ICAEW – FM, Exam Review. Questions and answers, rated A+ Accounting Rate of Return - -Average Profit/Average investment Internal Rate of Return - -a + NPVa/NPVa-NPVb x (b-a) Money cost of capital - -(1 + money coc) = (1 + real coc%) x (1 + inflation %) Equivalent annual cost (EAC) - -PV of 1 cycle/AF^n of cycle Profitability index (for divisible projects) - -NPV/Investment in yr of rationing Sensitivity to sales volume - -NPV/PV of net contribution (after tax) Interest Rate Parity - -...

ICAEW – FM questions with correct answers

ICAEW - ACA - F.M. - Managing financial risk: Overseas trade Foreign exchange risk - correct answer transaction risk Transaction risk - correct answer the risk that an exchange rate will change between the transaction date and the subsequent settlement date i.e. it is the gain or loss arising on conversion. What does transaction risk occur on - correct answer Imports and exports? Give an example of transaction risk on imports part 1 - correct answer for example, a firm enters into ...

ICAEW - ACA - F.M. - Financing options - Equity sources and dividend policy (chapter 7)What are the 3 main methods of raising the equity finance If a firm is looking to finance a project through equity - correct answer retained profits in which case dividends may be cut. rights issues. new issues. What must you remember - correct answer that the cost of servicing the equity i.e. k.e will be the same regardless of the historic source of the funds. Why is this - correct answer because the...

ICAEW - ACA - F.M. - Managing financial risk Overseas trade Question and answers already passed 2024 Foreign exchange risk - correct answer transaction risk Transaction risk - correct answer the risk that an exchange rate will change between the transaction date and the subsequent settlement date i.e. it is the gain or loss arising on conversion. What does transaction risk occur on - correct answer Imports and exports? Give an example of transaction risk on imports part 1 - correc...

ICAEW - ACA - F.M. - Investment - Overview (chapter 1)Strategy - correct answer the long term direction of the business and how the objectives of the business are achieved Business strategy - correct answer Focuses on ensuring objectives are achieved taking account of. fit with the environment. resources available. stakeholder concerns. Financial strategy - correct answer Focuses on the financial decisions required to achieve the business strategy. investment decisions. financing decis...

ICAEW – FM Exam Questions And Answers 100% Pass Accounting Rate of Return - answerAverage Profit/Average investment Internal Rate of Return - answera + NPVa/NPVa-NPVb x (b-a) Money cost of capital - answer(1 + money coc) = (1 + real coc%) x (1 + inflation %) Equivalent annual cost (EAC) - answerPV of 1 cycle/AF^n of cycle Profitability index (for divisible projects) - answerNPV/Investment in yr of rationing Sensitivity to sales volume - answerNPV/PV of net contribution (after tax) Inte...

ICAEW - ACA - F.M. - Financing options - Equity sources and dividend policy (chapter 7) Question and answers correctly solved 2024 What are the 3 main methods of raising the equity finance If a firm is looking to finance a project through equity - correct answer retained profits in which case dividends may be cut. rights issues. new issues. What must you remember - correct answer that the cost of servicing the equity i.e. k.e will be the same regardless of the historic source of the funds. ...