ACCA FM (F9): FREE Revision using CR Questions & EXAM TIPS

☑ Method to tackle Constructed Response Questions in the paper

☑ Exam Tips

☑ Working Capital Management CR Question

☑ Investment Appraisal CR Question

☑ Business Finance CR Question

• This is a FREE Revision
• I have covered three constructed response questions and for each question, a detailed answer has been provided
• I have explained how to tackle constructed response questions in the exam
• Provided some useful exam tips
• The first question is from working capital management. The following areas have been discussed in the question.- With recourse and without recourse calculation- Benefit from the services offered by the factoring company.

  – Discuss THREE factors that determine the level of a company’s investment in working capital

• The second question is from investment appraisal. The following areas have been discussed in the question.- Calculate the expected net present value of the investment project and comment on its financial acceptability.- Distinguish between risk and uncertainty and briefly explain why they should be considered in the investment appraisal process.

  – Critically discuss if sensitivity analysis will assist the company in assessing the risk of the investment project.

• The third question is from business finance. The following areas have been discussed in the question.- Calculate the market value after-tax weighted average cost of capital, before the new issue of bonds takes place and after the new issue of bonds takes place.- Discuss the director’s view that issuing traded bonds will decrease the weighted average cost of capital of the company and thereby increase the market value of the company.