Subject: ADVANCED FINANCIAL MANAGEMENT

Search 500 + past questions and counting.

FR – May 2018 – L2 – Q4 – Consolidated Financial Statements (IFRS 10)

Assess the financial performance and position of two companies using specified ratios and explain the limitations of ratio analysis.

Question

Ibadan Nigeria Limited is considering acquiring a suitable private limited liability company. The board of directors engaged a financial consultant to analyze the financial position of two companies, Abuja Limited and Rivers Limited, which are both receptive to the acquisition. The draft financial statements of the two companies are as follows:

Statements of Profit or Loss

a. Draft a report to the chairman of the board of directors of Ibadan Limited to assess the financial performance and position of the two companies using the following specific ratios: (12 Marks) i. Profitability ratios: Gross profit percentage and net profit margin. ii. Liquidity ratios: Acid test ratio, current ratio, trade receivable period. iii. Long-term financial stability ratios: Gearing ratio and proprietary ratio. iv. Efficiency ratios: Total asset turnover and non-current asset turnover.

b. Explain the limitations of ratio analysis and further information that may be useful to the board of directors when making the acquisition decision. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Acquisition, Efficiency Ratios, Financial Analysis, Liquidity Ratios, Long-term Stability Ratios, Profitability Ratios, Ratio Analysis
Level: Level 2

Topic: Consolidated Financial Statements (IFRS 10)

AFM – Nov 2016 – L3 – Q5b – Emerging issues in finance and financial management

Compare the functions of the IMF and World Bank and outline challenges faced by the IMF in West Africa.

Question

The International Monetary Fund (IMF) and the World Bank are institutions in the United Nations system. They are twin intergovernmental pillars supporting the structure of the world’s economic and financial order.

Required:
i) Compare and contrast THREE functions of the International Monetary Fund (IMF) and the World Bank. (3 marks)
ii) Explain TWO challenges being faced by the IMF in attaining its objectives in West African Countries. (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Economic Development, Global financial institutions, IMF, International monetary cooperation, World Bank
Level: Level 3

Topic: Emerging issues in finance and financial management
Series: NOV 2016

AFM – Nov 2016 – L3 – Q5a – Hedging against financial risk: Non-derivative techniques

Demonstrate how YSL can hedge currency risk using futures contracts and calculate the result of the hedge.

Question

YSL is a company located in the USA that has a contract to purchase goods from Japan in two months’ time on 1st September. The payment is to be made in yen and will total 140 million yen. The managing director of YSL wishes to protect the contract against adverse movements in foreign exchange rates and is considering the use of currency futures. The following data are available:

Spot foreign exchange rate: $1 = 128.15 yen
Yen currency futures contracts on SIMEX (Singapore Monetary Exchange)
- Contract size: 12,500,000 yen
- Contract prices (US$ per yen):
  - September: 0.007985
  - December: 0.008250

Assume that futures contracts mature at the end of the month.

Required:
i) Illustrate how YSL might hedge its foreign exchange risk using currency futures. (5 marks)
ii) Explain the meaning of basis risk and show what basis risk is involved in the proposed hedge. (5 marks)
iii) Assuming the spot exchange rate is 120 yen/$1 on 1 September and that basis risk decreases steadily in a linear manner, calculate what the result of the hedge is expected to be. Briefly discuss why this result might not occur. (5 marks)
(Margin requirements and taxation may be ignored.)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Basis risk, Currency Futures, Currency Hedging, Foreign Exchange Risk, Risk Management
Level: Level 3

Topic: Hedging against financial risk: Non-derivative techniques
Series: NOV 2016

AFM – Nov 2016 – L3 – Q4b – Financial strategy formulation

Discuss three advantages and three disadvantages of ABC Ltd being acquired in a leveraged buyout (LBO).

Question

ABC Ltd is a listed company that operates in the Information Technology industry. The company has been experiencing losses for several years now, and its reserves are fast depleting. Its earnings per share have been negative for the past three years. A team of the company’s largest shareholders and some managers are considering acquiring the company in a leveraged buy-out (LBO).

Required:
Discuss THREE advantages and THREE disadvantages of ABC Ltd being acquired in an LBO.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advantages and disadvantages, Corporate finance, Financial restructuring, LBO, Leveraged buyout
Level: Level 3

Topic: Financial strategy formulation
Series: NOV 2016

AFM – Nov 2016 – L3 – Q4a – Valuation of acquisitions and mergers

Calculate the NPV of Mama Ltd's acquisition of Papa Ltd and determine the value of the combined entity and an appropriate share exchange ratio.

Question

a) The Directors of Mama Ltd (Mama), a large listed company, are considering an opportunity to
acquire all the shares of Papa Ltd (Papa), a small listed company with a highly efficient
production technology.
Mama has 10 million shares of common stock in issue that are currently trading at GH¢6.00
each. Papa Ltd has 5 million shares of common stock in issue, each of which is trading at
GH¢4.50.
If Papa is acquired and integrated into the business of Mama, the production efficiency of the
combined entity would increase and save the combined business GH¢600,000 in operating
costs each year to perpetuity.
Though Mama operates in the same industry as Papa, its financial leverage is higher than that
of Papa. Mama’s total debt stock is valued at GH¢40 million, and its after-tax cost of debt is
22%. The beta of Mama’s common stock is 1.2. The return on the risk-free asset is 20% and
the market risk premium is 5%.
Required:
Suppose Mama offers a cash consideration of GH¢25 million from its existing funds to the
shareholders of Papa for all of their shares.
i) Calculate the NPV of the acquisition, and advise the directors of Mama on whether to
proceed with the acquisition or not. (8 marks)
ii) Calculate the value of the combined entity immediately after the acquisition. (3 marks)
iii) Suppose Mama would like to acquire all the shares in Papa by offering fresh shares of its
own common stock to the shareholders of Papa. Advise the directors on the appropriate
share exchange ratio based on market price.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Acquisition valuation, Corporate finance, Mergers and Acquisitions, NPV, Synergy
Level: Level 3

Topic: Valuation of acquisitions and mergers
Series: NOV 2016

AFM – May 2017 – L3 – Q5b – Treasury and Advanced Risk Management Techniques

Explanation of internal and external factors influencing transfer pricing decisions for multinational companies like Kofas Ltd.

Question

One of the key considerations for multinational companies is to decide on the price at which goods and services are transferred from one member of a group to another.

Kofas Ltd has been operating in four countries: Ghana, Nigeria, UK, and USA. The parent company and the subsidiaries have decided to use a transfer pricing policy.

Required:
You have been approached as a consultant to advise on the internal and external factors that will facilitate the transfer of goods and services from one member of the group to another. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: External factors, Internal Factors, multinational companies, Profit Maximization, Transfer Pricing
Level: Level 3

Topic: Treasury and Advanced Risk Management Techniques
Series: MAY 2017

AFM – May 2017 – L3 – Q5a – Hedging against financial risk: Non-derivative techniques

Calculation of settlement value, loan amount, interest on loan, and effective interest rate under a Forward Rate Agreement.

Question

The Board of Directors of Aduana Enterprise has approved an expansion project which will require a cash inflow of GH¢10 million. The investment duration will be 6 months, and management is considering taking a fixed interest rate loan from its bankers. The loan will be required in three months from the date of board’s approval.

Management of Aduana is considering hedging its risk exposure using a Forward Rate Agreement (FRA). The 3-9 months’ FRA rate at the transaction date was 5%.

Required:
If the spot rate at the settlement date is 8%, calculate the following:
i) Settlement value (3 marks)
ii) Loan amount required (2 marks)
iii) Interest on the loan (2 marks)
iv) Effective interest rate (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Forward Rate Agreement, FRA, Interest calculation, Interest rate hedging, Loan management
Level: Level 3

Topic: Hedging against financial risk: Non-derivative techniques
Series: MAY 2017

AFM – May 2017 – L3 – Q4b – Financial reconstruction, Business reorganisation

Distinguishing between leveraged buy-out and recapitalization, identifying types of reconstruction, and describing steps in financial reconstruction.

Question

There are many possible reasons why management would wish to restructure a company’s finances. A reconstruction scheme might be agreed upon when a company is in danger of being put into liquidation.

Required:
i) Distinguish between a leveraged buy-out and leveraged recapitalisation. (4 marks)
ii) What are the THREE main types of reconstruction? Describe them briefly. (3 marks)
iii) Describe the procedures that should be followed when designing a financial reconstruction scheme. (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial reconstruction, Leveraged buy-out, Organizational restructuring, Recapitalization
Level: Level 3

Topic: Business reorganisation, Financial reconstruction
Series: MAY 2017

AFM – May 2017 – L3 – Q4a – Sources of finance and cost of capital

Explanation of Eurobonds, their advantages, and problems associated with their use in Ghana's international borrowing.

Question

The government of Ghana has been borrowing in the international financial market by issuing “Eurobonds” to finance projects in Ghana. There has been a keen debate on the borrowing by the government.

Required:
i) As a Finance Officer, explain what Eurobond is all about. (3 marks)
ii) Identify THREE advantages that have been cited for the government using Eurobonds. (3 marks)
iii) Evaluate FOUR problems associated with the use of international borrowing, especially Eurobonds in Ghana. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Eurobonds, Government Finance, International borrowing, Risk Management
Level: Level 3

Topic: Sources of finance and cost of capital
Series: MAY 2017

AFM – May 2017 – L3 – Q3c – Valuation of acquisitions and mergers

Factors to be considered by the directors and shareholders in evaluating the worthiness of the takeover proposal.

Question

Discuss briefly any other factors that the directors and shareholders of both companies might consider in assessing the worthwhileness of the proposed takeover. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Mergers and Acquisitions, Shareholders, Synergies, Takeover considerations, Transaction costs
Level: Level 3

Topic: Valuation of acquisitions and mergers
Series: MAY 2017

AFM – Nov 2017 – L3 – Q5a – Treasury and Advanced Risk Management Techniques

Calculate the impact of undertaking multilateral netting for Paakro Ltd and its subsidiaries using expected exchange rates.

Question

Paakro Limited, based in Ghana, is the parent company of a group that contains three subsidiaries: Mangoase Limited based in Munich, Germany; Asaman Limited based in Atlanta, USA; and Nsawam Limited based in Tokyo, Japan. The following cash flows are due in three months’ time between Paakro Limited and its subsidiaries:

Owed by	Owed to	Amount
Paakro Ltd	Nsawam Ltd	¥3 million
Paakro Ltd	Asaman Ltd	$5 million
Mangoase Ltd	Asaman Ltd	$4 million
Mangoase Ltd	Nsawam Ltd	¥7 million
Asaman Ltd	Nsawam Ltd	¥2 million
Asaman Ltd	Paakro Ltd	$6 million
Nsawam Ltd	Mangoase Ltd	€12 million
Nsawam Ltd	Paakro Ltd	¥5 million

The mid-rate exchange rates in three months’ time are expected to be:

GH¢4.0 = $1
GH¢3.0 = €1
GH¢3.5 = ¥1

Required:
Calculate, using a tabular format (transaction matrix), the impact of undertaking multilateral netting by Paakro Limited and its three subsidiary companies for the cash flows due in three months. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Flow, Exchange Rates, Foreign Exchange, Multilateral netting, Netting table
Level: Level 3

Topic: Treasury and Advanced Risk Management Techniques
Series: NOV 2017

AFM – May 2019 – L3 – Q1b – Sources of finance and cost of capital

Evaluate three financing options to meet a firm's inventory needs, considering costs and advantages.

Question

Kaki Limited needs to finance a seasonal bulge in inventories of GH¢400,000. The funds are needed for six months. The company is considering the following possibilities:

i) Warehouse loan received from a finance company. Terms are 12 percent with an 80 percent advance against the value of the inventory. The warehousing costs are GH¢7,000 for the six-month period. The residual financing requirement, which is GH¢400,000 less the amount advanced, will need to be financed by foregoing cash discounts on its payables. Standard terms are 2/10, net 30. However, the company feels it can postpone payment until the fortieth day without adverse effect.

ii) A floating lien arrangement from the supplier of the inventory at an effective interest rate of 20 percent. The supplier will advance the full value of the inventory.

iii) A field warehouse loan from another finance company at an interest rate of 10 percent. The advance is 70 percent, and field warehousing costs amount to GH¢10,000 for the six-month period. The residual financing requirement will need to be financed by foregoing cash discounts on payables as in the first alternative.

Required:
Evaluate the feasible method of financing the inventory needs of the firm.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Discounts, Field Warehouse Loan, Floating Lien, Inventory Financing, Short-term Financing, Warehouse Loan
Level: Level 3

Topic: Sources of finance and cost of capital
Series: MAY 2019

AFM – Nov 2016 – L3 – Q1a – The role and responsibility of senior financial executive/advisor | Financial strategy formulation

Discuss the interrelation between investment, financing, and dividend policies and their effect on firm value.

Question

When determining the financial objectives of a company, it is necessary to take three types of policy decisions into account: investment policy, financing policy, and dividend policy.

Required:
Discuss the nature of these three types of decisions, commenting on how they are interrelated and how they might affect the value of the firm (i.e., the present value of projected cash flows).

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate finance, Dividend Policy, Financial management decisions, Financing policy, Investment policy
Level: Level 3

Topic: Financial strategy formulation, The role and responsibility of senior financial executive/advisor
Series: NOV 2016

AFM – Nov 2017 – L3 – Q4b – Trading and planning in a multinational environment

Draft memorandum setting out key points for opening an export business, including pricing, risks, credit terms, and market representation.

Question

A company manufacturing specialized electronic equipment has so far sold only inside the country where it is established. It has considerable surplus capacity, and the Chairman has asked you, as his Finance Director, to prepare a draft memorandum for the board on his proposal to open up export business to a number of countries.

Required:
Draft this memorandum, setting out the main points that would need to be considered before arriving at a final decision, under the following headings:

i) Export pricing and profitability
ii) Credit terms and methods of obtaining payment
iii) Risks and methods of avoiding them
iv) Forms of representation or local organization in export markets.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Credit terms, Export market representation, Export pricing, Export risks
Level: Level 3

Topic: Trading and planning in a multinational environment
Series: NOV 2017

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 – May 2019 – L3 – Q1a – Economic environment for multinational organisations

Compare joint ventures and licensing for foreign expansion and explain five strategic reasons for a firm to engage in FDI.

Question

“Oil-rich Ghana’s sovereign wealth fund Ghana Development Board (GDB) has already invested in a number of real estate and infrastructure projects around the world, including a $2.5 billion joint venture with Petro Nigeria Ltd and a scheme to create a carbon-neutral city in Ghana”.

Required:

i) Compare the use of joint ventures as opposed to licensing for GDB if it wishes to expand abroad and outline the advantages and disadvantages of both joint ventures and licensing. (5 marks)

ii) Explain FIVE (5) strategic reasons for Foreign Direct Investment (FDI), for a firm wishing to expand. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Foreign Direct Investment (FDI), Foreign Expansion, Global Partnerships, Investment strategy, Joint Ventures, Licensing, Multinational Business

Topic: Economic environment for multinational organisations
Series: MAY 2019

AFM – Nov 2017 – L3 – Q3 – Valuation of acquisitions and mergers

Calculating the valuation per share for minority and complete takeover of Fasco and Boscan, and discussing limitations of the approach.

Question

Zed Ltd is considering the immediate purchase of some, or all, of the share capital of one of two firms—Fasco Ltd and Boscan Ltd. Both Fasco Ltd and Boscan Ltd have one million ordinary shares issued, and neither company has any debt capital outstanding.

Both firms are expected to pay a dividend in one year’s time—Fasco’s expected dividend amounting to 30p per share, and Boscan’s being 27p per share. Dividends will be paid annually and are expected to increase over time. Fasco’s dividends are expected to display perpetual growth at a compound rate of 6% per annum. Boscan’s dividend will grow at the high annual compound rate of 33⅓% until a dividend of 64p per share is reached in year 4. Thereafter, Boscan’s dividend will remain constant.

If Zed is able to purchase all the equity capital of either firm, then the reduced competition would enable Zed to save some advertising and administrative costs, which would amount to GH¢225,000 per annum indefinitely, and, in year 2, to sell some office space for GH¢800,000. These benefits and savings will only occur if a complete takeover is carried out. Zed would change some operations of any company completely taken over, the details are:

Fasco – No dividend would be paid until year 3. Year 3 dividend would be 25p per share, and dividends would then grow at 10% per annum indefinitely.
Boscan – No change in total dividends in years 1 to 4, but after year 4, dividend growth would be 25% per annum compound until year 7. Thereafter, annual dividends would remain constant at the year 7 amount per share.

An appropriate discount rate for the risk inherent in all the cash flows mentioned is 15%.

Required:
a) Calculate the valuation per share for a minority investment in each of the firms, Fasco and Boscan, which would provide the investor with a 15% rate of return. (6 marks)

b) Calculate the maximum amount per share which Zed should consider paying for each company in the event of a complete takeover. (8 marks)

c) Comment on any limitation of the approach used in part (a), and specify the other major factors which would be important to consider if the proposed valuations were being undertaken as a practical exercise. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Acquisition, Discount rate, Dividend Growth, Synergies, Valuation
Level: Level 3

Topic: Valuation of acquisitions and mergers
Series: NOV 2017

AFM – Nov 2015 – L3 – Q5 – Valuation of acquisitions and mergers

Evaluate the acquisition of Anas-Expo Clothing Ltd by Two-Pack Fashion Ltd, analyzing its effect on EPS, shareholders' wealth, and sources of conflict.

Question

You are the Finance Manager of a growing clothing company, Two-Pack Fashion Ltd (Two-Pack). Two-Pack has enjoyed significant growth in recent years using an internal growth strategy. Two-Pack is now seeking to acquire other companies to speed up its growth drive. It has identified Anas-Expo Clothing Ltd (Anas-Expo) as a suitable candidate for takeover. Both companies have the same level of risk.

Anas-Expo produces high-quality handmade clothes, with which it has earned several awards. The company has recorded considerable profits in the past, but its output has dwindled over the past two years due to increasing labour costs. Labour unions have pressured policymakers into amending labour regulations, particularly those relating to pensions and minimum wages, to provide more benefits and protection for workers. Directors of Two-Pack believe that production and profitability of Anas-Expo will be enhanced if its production process is mechanized.

Below are summarized financial data for the two companies immediately before acquisition:

Two-Pack (GHS’m)	Anas-Expo (GHS’m)
Sales revenue	285.8
Net operating income	85.8
Interest charges	14.2
Net income before tax	71.6
Corporate tax	15.8
Net income after tax	55.8
Dividends	22.3
Addition to retained earnings	33.5

Two-Pack has 40 million shares and a P/E ratio of 18, while Anas-Expo has 25 million shares and a P/E ratio of 12. Directors of Two-Pack have decided that Two-Pack takes up all the equity shares in Anas-Expo by offering to its shareholders one new share for every share they hold. They have also decided that Two-Pack mechanizes Anas-Expo’s production process immediately at the cost of GHS18 million, replacing work currently done by hand. It is estimated that operational efficiency arising from the acquisition and integration of the two companies would yield after-tax benefits of GHS25 million per year to perpetuity. The cost of capital of Two-Pack is 25%.

Required:

(a) Evaluate the acquisition proposal, and recommend whether the acquisition should go ahead.
(b) Analyze the effect of the acquisition on the earnings per share (EPS) of Two-Pack following the successful acquisition of Anas-Expo.
(c) Analyze the effect of the acquisition on the wealth of the shareholders of each company.
(d) Advise the directors of Two-Pack on three likely sources of conflict in relation to the acquisition of Anas-Expo and the mechanization of its production process, and suggest ways through which the conflict could be avoided or resolved.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Conflict management, Earnings Per Share (EPS), Mergers and Acquisitions, Shareholders' Wealth, Synergy, Valuation
Level: Level 3

Topic: Valuation of acquisitions and mergers
Series: NOV 2015

AFM – Nov 2017 – L3 – Q2 – Sources of finance and cost of capital

Calculation of the cost of capital using the WACC and CAPM methods for a company and discussing when to use the cost of equity or WACC for discounting.

Question

Animal Farm Product Ltd, (AFP), a manufacturer of veterinary medicines for farm animals, wishes to estimate its current cost of capital.

The following figures have been extracted from their most recent accounts:

Other relevant data:

The current market value of AFP’s ordinary shares is GH¢12.50 per share cum-dividend. AFP’s beta is 1.4, the risk-free rate is 3%, and the return on the SEC index (the market proxy) is 8%. An annual dividend of GH¢800,000 is due for payment shortly.
The 8% debentures are irredeemable and are trading at a current market value of GH¢106.00, a GH¢6.00 premium over their issue price of GH¢100.00. Semi-annual interest of GH¢4 million has just been paid on the debentures.
The 6% preference shares are trading at a current market value of GH¢6.00, a GH¢1 above their issue price of GH¢5.00. Interest has just been paid on these preference shares.
There have been no issues or redemptions of ordinary shares or debentures during the past five years, and the corporation tax rate remains at 12.5%. Assume that tax relief on the debenture interest arises at the same time as the interest payment.

Required:

a) Calculate the cost of capital that AFP should use as a discount rate when appraising new marginal investment opportunities. (11 marks)

b) Explain when firms should discount projects using:

The cost of equity;
The WACC instead; and
When should they use neither? You may use the information and your results in part (a) as examples. (6 marks)

c) Discuss what type of covenants might be attached to bonds. (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bonds, CAPM, Cost of Capital, Preference shares, WACC
Level: Level 3

Topic: Sources of finance and cost of capital
Series: NOV 2017

AFM – Nov 2018 – L3 – Q5b – The role of the treasury function in multinationals

Explain key money market instruments, including securitization, reverse repurchase agreements, banker’s acceptance, and commercial paper.

Question

The money market deals primarily with short-term instruments with short-term maturities and the repayment of funds borrowed is required within a short period of time.

Required:
Explain the following in the money markets:
i) Securitization.
ii) A “Reverse Repurchase Agreement”.
iii) Banker’s Acceptance.
iv) Commercial Paper.
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Banker’s Acceptance, Commercial Paper, Money market, Reverse Repurchase Agreement, Securitization
Level: Level 3

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

Subject: ADVANCED FINANCIAL MANAGEMENT

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

FR – May 2018 – L2 – Q4 – Consolidated Financial Statements (IFRS 10)

Assess the financial performance and position of two companies using specified ratios and explain the limitations of ratio analysis.

You're reporting an error for "FR – May 2018 – L2 – Q4 – Consolidated Financial Statements (IFRS 10)"

AFM – Nov 2016 – L3 – Q5b – Emerging issues in finance and financial management

Compare the functions of the IMF and World Bank and outline challenges faced by the IMF in West Africa.

You're reporting an error for "AFM – Nov 2016 – L3 – Q5b – Emerging issues in finance and financial management"

AFM – Nov 2016 – L3 – Q5a – Hedging against financial risk: Non-derivative techniques

Demonstrate how YSL can hedge currency risk using futures contracts and calculate the result of the hedge.

You're reporting an error for "AFM – Nov 2016 – L3 – Q5a – Hedging against financial risk: Non-derivative techniques"

AFM – Nov 2016 – L3 – Q4b – Financial strategy formulation

Discuss three advantages and three disadvantages of ABC Ltd being acquired in a leveraged buyout (LBO).

You're reporting an error for "AFM – Nov 2016 – L3 – Q4b – Financial strategy formulation"

AFM – Nov 2016 – L3 – Q4a – Valuation of acquisitions and mergers

Calculate the NPV of Mama Ltd's acquisition of Papa Ltd and determine the value of the combined entity and an appropriate share exchange ratio.

You're reporting an error for "AFM – Nov 2016 – L3 – Q4a – Valuation of acquisitions and mergers"

AFM – May 2017 – L3 – Q5b – Treasury and Advanced Risk Management Techniques

Explanation of internal and external factors influencing transfer pricing decisions for multinational companies like Kofas Ltd.

You're reporting an error for "AFM – May 2017 – L3 – Q5b – Treasury and Advanced Risk Management Techniques"

AFM – May 2017 – L3 – Q5a – Hedging against financial risk: Non-derivative techniques

Calculation of settlement value, loan amount, interest on loan, and effective interest rate under a Forward Rate Agreement.

You're reporting an error for "AFM – May 2017 – L3 – Q5a – Hedging against financial risk: Non-derivative techniques"

AFM – May 2017 – L3 – Q4b – Financial reconstruction, Business reorganisation

Distinguishing between leveraged buy-out and recapitalization, identifying types of reconstruction, and describing steps in financial reconstruction.

You're reporting an error for "AFM – May 2017 – L3 – Q4b – Financial reconstruction, Business reorganisation"

AFM – May 2017 – L3 – Q4a – Sources of finance and cost of capital

Explanation of Eurobonds, their advantages, and problems associated with their use in Ghana's international borrowing.

You're reporting an error for "AFM – May 2017 – L3 – Q4a – Sources of finance and cost of capital"

AFM – May 2017 – L3 – Q3c – Valuation of acquisitions and mergers

Factors to be considered by the directors and shareholders in evaluating the worthiness of the takeover proposal.

You're reporting an error for "AFM – May 2017 – L3 – Q3c – Valuation of acquisitions and mergers"

AFM – Nov 2017 – L3 – Q5a – Treasury and Advanced Risk Management Techniques

Calculate the impact of undertaking multilateral netting for Paakro Ltd and its subsidiaries using expected exchange rates.

You're reporting an error for "AFM – Nov 2017 – L3 – Q5a – Treasury and Advanced Risk Management Techniques"

AFM – May 2019 – L3 – Q1b – Sources of finance and cost of capital

Evaluate three financing options to meet a firm's inventory needs, considering costs and advantages.

You're reporting an error for "AFM – May 2019 – L3 – Q1b – Sources of finance and cost of capital"

AFM – Nov 2016 – L3 – Q1a – The role and responsibility of senior financial executive/advisor | Financial strategy formulation

Discuss the interrelation between investment, financing, and dividend policies and their effect on firm value.

You're reporting an error for "AFM – Nov 2016 – L3 – Q1a – The role and responsibility of senior financial executive/advisor | Financial strategy formulation"

AFM – Nov 2017 – L3 – Q4b – Trading and planning in a multinational environment

Draft memorandum setting out key points for opening an export business, including pricing, risks, credit terms, and market representation.

You're reporting an error for "AFM – Nov 2017 – L3 – Q4b – Trading and planning in a multinational environment"

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 – May 2019 – L3 – Q1a – Economic environment for multinational organisations

Compare joint ventures and licensing for foreign expansion and explain five strategic reasons for a firm to engage in FDI.

You're reporting an error for "AFM – May 2019 – L3 – Q1a – Economic environment for multinational organisations"

AFM – Nov 2017 – L3 – Q3 – Valuation of acquisitions and mergers

Calculating the valuation per share for minority and complete takeover of Fasco and Boscan, and discussing limitations of the approach.

You're reporting an error for "AFM – Nov 2017 – L3 – Q3 – Valuation of acquisitions and mergers"

AFM – Nov 2015 – L3 – Q5 – Valuation of acquisitions and mergers

Evaluate the acquisition of Anas-Expo Clothing Ltd by Two-Pack Fashion Ltd, analyzing its effect on EPS, shareholders' wealth, and sources of conflict.

You're reporting an error for "AFM – Nov 2015 – L3 – Q5 – Valuation of acquisitions and mergers"

AFM – Nov 2017 – L3 – Q2 – Sources of finance and cost of capital

Calculation of the cost of capital using the WACC and CAPM methods for a company and discussing when to use the cost of equity or WACC for discounting.

You're reporting an error for "AFM – Nov 2017 – L3 – Q2 – Sources of finance and cost of capital"

AFM – Nov 2018 – L3 – Q5b – The role of the treasury function in multinationals

Explain key money market instruments, including securitization, reverse repurchase agreements, banker’s acceptance, and commercial paper.

You're reporting an error for "AFM – Nov 2018 – L3 – Q5b – The role of the treasury function in multinationals"

Our offerings

Community

Contact Info

Customer

Get In Touch

admin

Pick a Form