Title AC3059 - Financial management - 2014 Examiners Commentaries.pdf ✅

Examiners’ commentaries 2014 Examiners’ commentaries 2014 AC3059 Financial management Important note This commentary reflects the examination and assessment arrangements for this course in the academic year 2013–14. The format and structure of the examination may change in future years, and any such changes will be publicised on the virtual learning environment (VLE). Information about the subject guide Unless otherwise stated, all cross-references will be to the latest version of the subject guide (2012). You should always attempt to use the most recent edition of any Essential reading textbook, even if the commentary and/or online reading list and/or subject guide refers to an earlier edition. If different editions of Essential reading are listed, please check the VLE for reading supplements – if none are available, please use the contents list and index of the new edition to find the relevant section. General remarks Learning outcomes At the end of this course, and having completed the Essential reading and activities, you should be able to: • discuss the theoretical models underpinning the practices in financial management • apply the techniques derived from the models and theories in financial management • explain the long- and short-term financial needs of a business • describe the techniques used for the selection and management of long and short-term assets • discuss and give examples of the wider aspects of financial management so as to include international considerations and the need to communicate decisions made to other members of a management team. Format of the examination The examination is three hours long. The examination paper has two sections, A and B, with four questions in each section. You are required to answer two questions from each section. Section A questions test your ability to apply analytical and computational skills to the problems set, and then they usually conclude with a part requiring interpretation of the solutions prepared in the first parts of the question. The questions in Section B usually require a mix of understanding, knowledge, description or analysis and application applied to the theory, concept or practical scenario presented. The answer should be presented in an essay format, unless otherwise requested. 1

Examiners’ commentaries 2014 • Ensure that your written answers to the practice questions do attempt to answer the question posed and not the one you wish you could be answering. Learn to focus your answer on the contents, context and requirements of that specific question. Essential reading The core textbook is now Brealey, Myers, and Allen, Principles of corporate finance. (New York: McGraw Hill, 2010) tenth edition [ISBN 9780071314268]. In the specific comments for the Zone A and B papers, the chapter numbers are given for this particular edition. Question spotting Many candidates are disappointed to find that their examination performance is poorer than they expected. This can be due to a number of different reasons and the Examiners’ commentaries suggest ways of addressing common problems and improving your performance. We want to draw your attention to one particular failing – ‘question spotting’, that is, confining your examination preparation to a few question topics which have come up in past papers for the course. This can have very serious consequences. We recognise that candidates may not cover all topics in the syllabus in the same depth, but you need to be aware that Examiners are free to set questions on any aspect of the syllabus. This means that you need to study enough of the syllabus to enable you to answer the required number of examination questions. The syllabus can be found in the ‘Course information sheet’ in the section of the VLE dedicated to this course. You should read the syllabus very carefully and ensure that you cover sufficient material in preparation for the examination. Examiners will vary the topics and questions from year to year and may well set questions that have not appeared in past papers – every topic on the syllabus is a legitimate examination target. So although past papers can be helpful in revision, you cannot assume that topics or specific questions that have come up in past examinations will occur again. If you rely on a question spotting strategy, it is likely you will find yourself in difficulties when you sit the examination paper. We strongly advise you not to adopt this strategy. 3