ACCA ADVANCED FINANCIAL P4 MANAGEMENT (AFM) UNITS

The role and responsibility of the financial manager Investment appraisal International operations and international investment appraisal The financing decision The dividend decision The weighted average cost of capital (WACC) Risk adjusted WACC and adjusted present value Option pricing An introduction Read More …

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Questions and Answers

The role and responsibility of the financial manager   Influence on objectives   Discuss, and provide examples of, the types of non-financial, ethical and environmental issues that might influence the objectives of companies. Consider the impact of these non-financial, ethical Read More …

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Corporate failure and reconstruction

        Financial distress and corporate failure   What is corporate failure?   Corporate failure occurs when a company cannot achieve a satisfactory return on capital over the longer term. If unchecked, the situation is likely to lead to an inability Read More …

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Business valuation

Introduction to business valuation   This chapter covers several different methods of business valuation. You should view the different methods as complementary which enable you to suggest a possible value region. It is essential that you are able to comment Read More …

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Strategic aspects of acquisitions

Mergers and acquisitions – The terms explained   Terminology   The term ‘merger’ is usually used to describe the joining together of two or more entities.   Strictly, if one entity acquires a majority shareholding in another, the second is Read More …

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Hedging interest rate risk

Introduction   Firms are exposed to interest rate movements in two ways:   The cost of existing borrowings (or the yield on deposits) may be linked to interest rates in the economy. This risk exposure can be eliminated using Read More …

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Hedging foreign exchange risk

Introduction   Types of forex risk   Firms may be exposed to three types of foreign exchange risk:   Transaction risk   The risk of an exchange rate changing between the transaction date and the subsequent settlement date on an Read More …

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