Tiêu đề AC3059 - Financial Management - 2017 Examiners Commentaries.pdf ✅

Examiners’ commentaries 2017 Examiners’ commentaries 2017 AC3059 Financial management Important note This commentary reflects the examination and assessment arrangements for this course in the academic year 2016–17. 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 and the Essential reading references Unless otherwise stated, all cross-references will be to the latest version of the subject guide (2015). 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 refer 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 the course and having completed the essential reading and activities, you should be able to: • describe how different financial markets function • estimate the value of different financial instruments (including stocks and bonds) • make capital budgeting decisions under both certainty and uncertainty • apply the capital assets pricing model in practical scenarios • discuss the capital structure theory and dividend policy of a firm • estimate the value of derivatives and advise management how to use derivatives in risk management and capital budgeting • describe and assess how companies manage working capital and short-term financing • discuss the main motives and implications of mergers and acquisitions • integrate subject matter studied on related modules and to demonstrate the multi-disciplinary aspect of practical financial management problems • use academic theory and research to question established financial theories • be more proficient in researching materials on the internet and Online Library • use excel for statistical analysis. 1

Examiners’ commentaries 2017 etc. unless your workings are shown. In the essay-type questions, you should structure your answers, starting with an introductory paragraph that outlines the answer you will be giving and the arguments you will be making. In the main body of your answer, describe the theories and concepts that provide the basis of the argument that can then be developed and substantiated. The concluding section should draw together the main points of your argument in a summary. Key steps to improvement • Read beyond the subject guide. • Practise computational questions in the subject guide, textbooks and any other appropriate sources. • Practise both computational and written questions from past examination papers. As the examination draws closer, practise under time pressure, remembering that you probably only have approximately 36 minutes per question in which to write your answer. • Ensure your written answers to your practice questions do attempt to answer the questions posed and not the one you wish you could be answering. Learn to focus on the contents, context and requirements of that specific question. Readings for this paper Please note that shorthand will be used when referring to the following textbooks: • BMA – Brealey, R.A., S.C. Myers and F. Allen, Principles of corporate finance. (New York: McGraw–Hill Inc, 2010) tenth edition [ISBN 9780071314268]. • SG – subject guide. Fung, L. Financial management. (London: University of London International Programmes, 2015). Examination revision strategy Many candidates are disappointed to find that their examination performance is poorer than they expected. This may be due to a number of reasons, but one particular failing is ‘question spotting’, that is, confining your examination preparation to a few questions and/or topics which have come up in past papers for the course. This can have serious consequences. We recognise that candidates might 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 available on the VLE. You should read the syllabus 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. Examination papers may legitimately include questions on any topic in the syllabus. So, although past papers can be helpful during your 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. We strongly advise you not to adopt this strategy. 3
AC3059 Financial management Examiners’ commentaries 2017 AC3059 Financial management Important note This commentary reflects the examination and assessment arrangements for this course in the academic year 2016–17. 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 and the Essential reading references Unless otherwise stated, all cross-references will be to the latest version of the subject guide (2015). 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 refer 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. Comments on specific questions – Zone A Candidates should answer FIVE of the following EIGHT questions: FOUR from Section A and ONE from Section B. All questions carry equal marks. Workings should be submitted for all questions requiring calculations. Any necessary assumptions introduced in answering a question are to be stated. Section A Answer FOUR questions from this section. Question 1 Roland plc manufactures high quality vehicle tyres. It has just won a contract to supply 80,000 mud track tyres to the car manufacturer, Toyota, for the next eight years. The company will need to purchase new equipment for this purpose, although existing factory space with a book value of £6,800,000 will be used as the manufacturing site, and is evaluating the two options posed below. Option 1: The equipment will cost the company £5,600,000, payable immediately. It has a life of 4 years, and is not expected to generate a resale value at the end of its life. 4