Question Tag: Financial management

Search 500 + past questions and counting.

POM – APR 2024 – L1 – Q3 – Functional Areas of Management

Write short notes on specified functional areas of management, including accounting, support, marketing, and general management with organizational behavior.

Question

Apart from the distinction among levels of management jobs, it is useful to differentiate among managers according to their responsibilities. Functional Managers are charged with specialized responsibilities. Write short notes on the following Functional Areas of Management:

i. Accounting and Financial Management (5 Marks)

ii. Support Functional Management Areas (5 Marks)

iii. Marketing Management (5 Marks)

iv. General Management and Organizational Behaviour (10 Marks)

(Total Marks-25)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting, Financial management, Functional Managers, General Management, Marketing, Organizational Behaviour, Support Areas
Level: Level 1

Topic: INTRODUCTION TO MANAGEMENT
Series: APR 2024

FM – Nov 2024 – L2 – Q5b – Overdue Debt Collection

Steps to collect overdue debts in financial management.

Question

Outline the steps to be followed to collect overdue debts.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Credit control, Debt Collection, Financial management, Late Payments, Payment Recovery, Receivables
Level: Level 2

Topic: Management of receivables and payables
Series: Nov 2024

FM – Nov 2024 – L2 – Q1b – Ethical Issues in Financial Management

Discuss four ethical issues in financial management and their impact on decision-making.

Question

Finance Managers often encounter decisions that affect the organisation’s financial health and reflect its commitment to ethical standards. Balancing profitability with ethical considerations can be challenging, yet it is essential for sustaining long-term success and protecting an organisation’s reputation.

Required:
Discuss FOUR ethical issues in financial management.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Governance, Ethics, Financial management, Professional Conduct
Level: Level 2

Topic: Ethical issues in financial management
Series: Nov 2024

FM – Nov 2016 – L3 – SB – Q2 – Investment Appraisal Techniques

Calculate the value of the convertible loan stock, expected growth rate in equity price, and provide recommendations on whether to hold or sell the security.

Question

Honey Comb Plc has issued 10% convertible loan stock, which is due for redemption in 10 years’ time (i.e., December 31, 2025). The option to convert is open only for another two years. If conversion does not take place by December 31, 2017, the option will lapse. The issue was sold to the public at a price of N920 for N1000 of convertible loan stock. The conversion rate at January 1, 2016 was 250 equity shares for N1000 of stock. Non-convertible loan stock in a similar risk class is presently yielding 12%. The market price of Honey Comb Plc equity shares has been increasing steadily over time, reflecting the performance of the company. The shares currently pay a dividend of N0.30 per share. The current price of the convertible security is N960, and each share is currently valued at N3.00. A holder of the convertible loan stock is considering whether to sell his holdings or continue to hold the stock. Ignore taxation while answering the questions.

Required:
a. What is the value of the security as simple unconvertible loan stock? (5 Marks)

b. What is the expected minimum annual rate of growth in the equity share price that is required to justify the holder of convertible loan stock holding on to the security before the option expires? (12 Marks)

c. What recommendation would you make to the holder of the security and why? (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Convertible Loan Stock, Equity Shares, Financial management, Investment Decision, Valuation
Level: Level 3

Topic: Investment Appraisal Techniques
Series: NOV 2016

FM – May 2022 – L3 – Q3 – Investment Appraisal Techniques

Calculate NPV of an investment, discuss inflation's impact, and recommend an optimal project under capital constraints.

Question

Opeyemi operates in an economy that has almost zero inflation. Management ignores inflation when evaluating investment projects because it is very low and considered insignificant. Opeyemi is evaluating a number of similar, alternative investments. The company uses an after-tax cost of capital of 6% and has already completed the evaluation of two investments.

The third investment is a new product that would be produced on a just-in-time basis and is expected to have a life of three years. This investment requires an immediate cash outflow of N200,000, which does not qualify for tax depreciation. The expected residual value at the end of the project’s life is N50,000.

A draft financial statement showing the values that are specific to this investment for the three years is as follows:

Year	1	2	3
Sales	230,000	350,000	270,000
Production Costs:
Materials	54,000	102,000	66,000
Labour	60,000	80,000	70,000
Other*	80,000	90,000	80,000
Profit	36,000	78,000	54,000
Closing Receivables	20,000	30,000	25,000
Closing Payables	6,000	9,000	8,000

*Other production costs shown above include depreciation calculated using the straight-line method.

The company is liable to pay corporate tax at a rate of 30% of its profits. One half of this is payable in the same year as the profit is earned, and the remainder is payable in the following year.

Required:

a. Calculate the net present value of the above investment proposal. (14 Marks)

b. Explain how the above investment project would be appraised if there were to be a change in the rate of inflation, so that it became too significant to be ignored. (3 Marks)

c. The evaluation of the other two investments is shown below:

Investment	Initial Investment	Net Present Value
W	300,000	75,000
Y	100,000	27,000

The company only has N400,000 of funds available. All of the investment proposals are non-divisible. None of the investments may be repeated.

Required:

Recommend, with supporting calculations, which of the three investment proposals should be accepted. (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial management, Inflation impact, Investment Selection, NPV Calculation
Level: Level 3

Topic: Investment Appraisal Techniques

FM – Nov 2021 – L3 – Q6 – Portfolio Management

Analyze the risk profile of Bettaluck plc's short-term equity portfolio and assess investment adjustments based on market returns and financial strategy.

Question

Bettaluck plc is experiencing a substantial net cash inflow, which has been temporarily invested in a short-term equity portfolio. This portfolio consists of investments in four Nigerian listed companies. The funds are intended to meet tax obligations, dividend payments, and future capital expenditures in several months.

Portfolio Details:

Required:

a. Based on the data provided, calculate the risk (i.e., Beta) of Bettaluck’s short-term investment portfolio relative to the market. (4 Marks)

b. Recommend whether the composition of Bettaluck’s short-term investment portfolio should be adjusted. Provide reasons for your recommendation, including relevant calculations. (6 Marks)

c. Discuss the factors a financial manager should consider when investing in marketable securities. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Gains, Dividend Yield, Financial management, Investment Portfolio, Market Return, Marketable Securities, Portfolio Beta, Risk Assessment, Short-Term Strategy, Treasury bills
Level: Level 3

Topic: Portfolio Management

FM – Nov 2020 – L3 – Q4a – Interest Rate Risk Management

Identifies and explains the risks industrial companies face due to fluctuations in interest rates.

Question

a. What risks might an industrial company face as a result of interest movements? (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial management, industrial companies, Interest Rate Risk, Risk Assessment
Level: Level 3

Topic: Interest Rate Risk Management

FM – Nov 2020 – L3 – Q3 – Corporate Governance and Financial Strategy

Discusses the ethical responsibilities companies face in developing an ethical framework and how ethical considerations impact main functional areas.

Question

a. What are the main responsibilities faced by companies when developing an ethical framework, and in what ways can these responsibilities be addressed? (10 Marks)

b. Discuss how ethical considerations impact on each of the main functional areas of a firm. (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Governance, ethical framework, Ethics, Financial management, functional impact, Responsibilities
Level: Level 3

Topic: Corporate Governance and Financial Strategy

PSAF – Nov 2014 – L2 – Q6 – Public Sector Reforms

Comparison of domestic vs. external public debts and proposing debt restructuring for Nigeria.

Question

Nigeria has contracted a number of debts obligations from both domestic and external sources.

a. What comparisons can you make between domestic and external public debts?
(9 Marks)

b. Formulate a debt restructuring method as a strategy for debts management in Nigeria.
(6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Debt Restructuring, Domestic Debt, External Debt, Financial management, Public Debt, Treasury Management
Level: Level 2

Topic: Public Sector Reforms

PSAF – Nov 2016 – L2 – Q6a – Public Sector Financial Statements

This question distinguishes between Cost Benefit Analysis (CBA) and Cost Effectiveness Analysis (CEA).

Question

Distinguish carefully between Cost Benefit Analysis (CBA) and Cost Effectiveness Analysis (CEA).

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Effectiveness Analysis, Cost-benefit analysis, Financial management
Level: Level 2

Topic: Public Sector Financial Statements
Series: NOV 2016

AFM – Nov 2017 – L3 – Q4a – Economic environment for multinational organizations

Discusses five ways in which government action can affect the decision-making role of a finance manager.

Question

The economic environment within which the Financial Manager must operate is subject to a variety of influences, one of which is from the government.

Required:
Explain FIVE areas in which government action might affect the problem-solving and decision-making roles of a Finance Manager. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Credit control, Financial management, Government Policy, Taxation, Trade policies
Level: Level 3

Topic: Economic environment for multinational organisations
Series: NOV 2017

AFM – Nov 2018 – L3 – Q5a – The role of the treasury function in multinationals

Determine whether GCB should borrow locally or through a portfolio of foreign currencies based on borrowing rates and expected currency changes.

Question

The Ghana Cocoa Board (GCB) is contemplating borrowing one-year funds in anticipation of the coming cocoa season, which starts in September/October 2017. GCB can borrow from the local financial market in Ghana or borrow a portfolio of funds made up of UK pounds and Euros. The information below is the borrowing rates and the probabilities of expected strengthening of the international currencies vis-à-vis the cedi.

Required:
Determine whether GCB should borrow from the local financial market or borrow a portfolio of funds made up of UK pounds and Euros.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Borrowing Rates, Currency Exchange, Financial management, Interest rates, Money market
Level: Level 3

Topic: The role of the treasury function in multinationals
Series: NOV 2018

AFM – May 2018 – L3 – Q1d – Theories of capital structure

Determining the required rate of return for Lime Spider Ltd’s shares using CAPM.

Question

The market is currently yielding a return of 16% while Treasury bills are yielding 10%. Shares of Lime Spider Ltd have a covariance of 7.5 with the market, while the market has a variance of 4.5.

Required:
Determine the required rate of return for Lime Spider Ltd’s shares

Answer

Find Related Questions by Tags, levels, etc.

Tags: CAPM, Financial management, Required Rate of Return, Share Price
Level: Level 3

Topic: Theories of capital structure
Series: MAY 2018

AFM – May 2018 – L3 – Q1b – Sources of finance and cost of capital

Calculating the share price at which public and rights issues should be made and the share price expected after the rights issue.

Question

Mbo Ltd needs to raise GH¢500,000 to finance a large-scale project which would produce earnings of GH¢90,000 in perpetuity but is undecided as to the manner in which the money should be raised.

The company has an issued capital of 2 million equity shares of GH¢1 each with a current market price of GH¢1.38 cum div. The annual dividend (which has been constant for many years) of GH¢360,000 is about to be paid.

Two methods of raising capital are being considered, a public issue, and a right issue at GH¢1.

Required:
i) Calculate the price at which the public issue should be made. (5 marks)
ii) Calculate the price at which you would expect shares to be valued immediately after the rights issue. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital raising, Financial management, Public Issue, Rights Issue, Share Price
Level: Level 3

Topic: Sources of finance and cost of capital
Series: MAY 2018

PSAF – Nov 2016 – L2 – Q2b – The context of public financial management.

Explaining key financial management provisions in the 1992 Constitution.

Question

State and explain FOUR key financial management provisions in the 1992 Constitution. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: 1992 Constitution, Approval Policies, Financial management, Public Funds, Revenue Policies
Level: Level 2

Topic: Public sector financing initiatives
Series: NOV 2016

PSAF – Nov 2016 – L2 – Q4d – Public expenditure and financial accountability framework

Discuss methods used by the government to ensure the success of financial reforms in the public sector.

Question

As a means to ensure strong financial management in the public sector and citizen confidence in public institutions, the government has introduced a number of financial reforms including International Public Sector Accounting Standards (IPSAS) in public financial management.Required:
Discuss FOUR methods used by government to ensure the success of these reforms.
(4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial management, Government Accountability, government reforms, IPSAS, policy implementation, Public Sector
Level: Level 2

Topic: Public sector financial management reforms
Series: NOV 2016

PSAF – Nov 2016 – L2 – Q4b – Public sector fiscal planning and budgeting.

Identify policies influencing resource allocation in a Local Government Authority.

Question

Resources of Local Government Authorities are very often limited. Therefore, there is the need for the limited resources to be efficiently allocated in order that a greater output is achieved from the limited resources.

Required:
Identify FOUR policies that would influence the allocation of resources in a Local Government Authority. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial management, ICAG, Level 2, Local Government, November 2016, Policies, professional program, Public Sector, Resource Allocation
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: NOV 2016

PSAF – Nov 2016 – L2 – Q4e – Public Expenditure and Financial Accountability Framework.

Identify four procedures necessary for effective management of public expenditure.

Question

Effective management of public expenditure is an essential mechanism for the effective allocation and the use of public funds to achieve the nation’s policy objectives.

Required:
Identify four procedures necessary for effective management of public expenditure. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial management, ICAG, Procedures, Professional Level 2, Public Expenditure
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: NOV 2016

PSAF – May 2016 – L2 – Q4d – Public sector fiscal planning and budgeting

This question discusses the reasons for the necessity of a decentralized financial management system in Ghana.

Question

The problems associated with decentralized financial administration and exercising controls have received considerable attention from both academicians and legislators.

Required: Explain FOUR reasons why it is necessary to have a decentralized financial management system in Ghana.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Decentralization, Financial Administration, Financial management, Ghana, Public Sector
Level: Level 2

Topic: Public sector fiscal planning and budgeting
Series: MAY 2016

PSAF – May 2016 – L2 – Q4c – Public sector financing initiatives

This question explores the objectives and guiding principles of Public Private Partnership (PPP) agreements in Ghana.

Question

i) State ONE objective of a public private partnership agreement?

ii) Explain THREE factors that the Government would consider before entering into a public private partnership agreement?

iii) Explain the following terms used as guiding principles in IPSAS 13 and 32 – Accounting for Public Private Partnership:

Service Concession Arrangement
Lease
Recognition of Revenue
Economic Life of an Asset

Answer

Find Related Questions by Tags, levels, etc.

Tags: Asset Life, Financial management, Ghana, IPSAS, Lease, PPP, Public-Private Partnership, Revenue Recognition, Service Concession
Level: Level 2

Topic: Public sector financing initiatives
Series: MAY 2016

Question Tag: Financial management

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

POM – APR 2024 – L1 – Q3 – Functional Areas of Management

Write short notes on specified functional areas of management, including accounting, support, marketing, and general management with organizational behavior.

You're reporting an error for "POM – APR 2024 – L1 – Q3 – Functional Areas of Management"

FM – Nov 2024 – L2 – Q5b – Overdue Debt Collection

Steps to collect overdue debts in financial management.

You're reporting an error for "FM – Nov 2024 – L2 – Q5b – Overdue Debt Collection"

FM – Nov 2024 – L2 – Q1b – Ethical Issues in Financial Management

Discuss four ethical issues in financial management and their impact on decision-making.

You're reporting an error for "FM – Nov 2024 – L2 – Q1b – Ethical Issues in Financial Management"

FM – Nov 2016 – L3 – SB – Q2 – Investment Appraisal Techniques

Calculate the value of the convertible loan stock, expected growth rate in equity price, and provide recommendations on whether to hold or sell the security.

You're reporting an error for "FM – Nov 2016 – L3 – SB – Q2 – Investment Appraisal Techniques"

FM – May 2022 – L3 – Q3 – Investment Appraisal Techniques

Calculate NPV of an investment, discuss inflation's impact, and recommend an optimal project under capital constraints.

Recommend, with supporting calculations, which of the three investment proposals should be accepted. (3 Marks)

You're reporting an error for "FM – May 2022 – L3 – Q3 – Investment Appraisal Techniques"

FM – Nov 2021 – L3 – Q6 – Portfolio Management

Analyze the risk profile of Bettaluck plc's short-term equity portfolio and assess investment adjustments based on market returns and financial strategy.

Required:

You're reporting an error for "FM – Nov 2021 – L3 – Q6 – Portfolio Management"

FM – Nov 2020 – L3 – Q4a – Interest Rate Risk Management

Identifies and explains the risks industrial companies face due to fluctuations in interest rates.

You're reporting an error for "FM – Nov 2020 – L3 – Q4a – Interest Rate Risk Management"

FM – Nov 2020 – L3 – Q3 – Corporate Governance and Financial Strategy

Discusses the ethical responsibilities companies face in developing an ethical framework and how ethical considerations impact main functional areas.

You're reporting an error for "FM – Nov 2020 – L3 – Q3 – Corporate Governance and Financial Strategy"

PSAF – Nov 2014 – L2 – Q6 – Public Sector Reforms

Comparison of domestic vs. external public debts and proposing debt restructuring for Nigeria.

You're reporting an error for "PSAF – Nov 2014 – L2 – Q6 – Public Sector Reforms"

PSAF – Nov 2016 – L2 – Q6a – Public Sector Financial Statements

This question distinguishes between Cost Benefit Analysis (CBA) and Cost Effectiveness Analysis (CEA).

You're reporting an error for "PSAF – Nov 2016 – L2 – Q6a – Public Sector Financial Statements"

AFM – Nov 2017 – L3 – Q4a – Economic environment for multinational organizations

Discusses five ways in which government action can affect the decision-making role of a finance manager.

You're reporting an error for "AFM – Nov 2017 – L3 – Q4a – Economic environment for multinational organizations"

AFM – Nov 2018 – L3 – Q5a – The role of the treasury function in multinationals

Determine whether GCB should borrow locally or through a portfolio of foreign currencies based on borrowing rates and expected currency changes.

You're reporting an error for "AFM – Nov 2018 – L3 – Q5a – The role of the treasury function in multinationals"

AFM – May 2018 – L3 – Q1d – Theories of capital structure

Determining the required rate of return for Lime Spider Ltd’s shares using CAPM.

You're reporting an error for "AFM – May 2018 – L3 – Q1d – Theories of capital structure"

AFM – May 2018 – L3 – Q1b – Sources of finance and cost of capital

Calculating the share price at which public and rights issues should be made and the share price expected after the rights issue.

You're reporting an error for "AFM – May 2018 – L3 – Q1b – Sources of finance and cost of capital"

PSAF – Nov 2016 – L2 – Q2b – The context of public financial management.

Explaining key financial management provisions in the 1992 Constitution.

You're reporting an error for "PSAF – Nov 2016 – L2 – Q2b – The context of public financial management."

PSAF – Nov 2016 – L2 – Q4d – Public expenditure and financial accountability framework

Discuss methods used by the government to ensure the success of financial reforms in the public sector.

You're reporting an error for "PSAF – Nov 2016 – L2 – Q4d – Public expenditure and financial accountability framework"

PSAF – Nov 2016 – L2 – Q4b – Public sector fiscal planning and budgeting.

Identify policies influencing resource allocation in a Local Government Authority.

You're reporting an error for "PSAF – Nov 2016 – L2 – Q4b – Public sector fiscal planning and budgeting."

PSAF – Nov 2016 – L2 – Q4e – Public Expenditure and Financial Accountability Framework.

Identify four procedures necessary for effective management of public expenditure.

You're reporting an error for "PSAF – Nov 2016 – L2 – Q4e – Public Expenditure and Financial Accountability Framework."

PSAF – May 2016 – L2 – Q4d – Public sector fiscal planning and budgeting

This question discusses the reasons for the necessity of a decentralized financial management system in Ghana.

You're reporting an error for "PSAF – May 2016 – L2 – Q4d – Public sector fiscal planning and budgeting"

PSAF – May 2016 – L2 – Q4c – Public sector financing initiatives

This question explores the objectives and guiding principles of Public Private Partnership (PPP) agreements in Ghana.

You're reporting an error for "PSAF – May 2016 – L2 – Q4c – Public sector financing initiatives"

Our offerings

Community

Contact Info

Customer

Get In Touch

admin

Pick a Form