FM Mock C Questions Sep 19

Jul 17, 2026

Uploaded by Theodore

Financial Management September 2019 mock examination paper covering core valuation and capital finance concepts. The document specifies a structured assessment format with multiple compulsory sections, timing rules, and instructions for annotation during reading and planning. It includes a formula sheet for key models and calculations such as CAPM, WACC, Miller–Orr cash management, growth and Gordon’s models, cost of capital relationships, and economic order quantity, alongside present value and annuity tables used for discounting cash flows.

LanguageEnglish

CategoryExam

FormatPDF

Pages16

Reading Time40 min

AccessFree to download

MOCK C Financial Management September 2019 Question paper Time allowed 3 hours and 15 minutes This paper is divided into three sections: Section A – All 15 questions are compulsory and MUST be attempted Section B – All 15 questions are compulsory and MUST be attempted Section C – BOTH questions are compulsory and MUST be attempted Formulae sheet, present value and annuity tables are on pages 3, 4 and 5 Do not open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor. Do NOT record any of your answerson the question paper. This question paper must not be removed from the examination hall. Do not open this paper until instructed by the supervisor Kaplan Publishing/Kaplan Financial Paper FM © Kaplan Financial Limited, 2019 The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such. No reliance should be placed on the content as the basis for any investment or other decision or in connection with any advice given to third parties. Please consult your appropriate professional adviser as necessary. Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to any person in respect of any losses or other claims, whether direct, indirect, incidental, consequential or otherwise arising in relation to the use of such materials. All rights reserved. No part of this examination may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without prior permission from Kaplan Publishing. FORMULAE SHEET Economic order quantity = Miller‐Orr model Return point = Lower limit + ( 13 × spread) 34 × Transaction cost × Variance of cash flows Spread = 3 Interest rate The capital asset pricing model E(r)j = Rf + βj (E(rm)– Rf) The asset beta formula βa = 􀂪􀂬􀂫 Ve~~ ~~+~~ ~~VVd1–~~ ~~T~~ ~~)) βe 􀂺􀂼􀂻 + 􀂪􀂬􀂫 Ve~~ ~~~~d~~V(1d(–T~~ ~~)T~~ ~~)) βd 􀂺􀂼􀂻 The growth model P D0 (1 􀀎 g) D0 (1 􀀎 g) 0 􀀠 (re – g) re 􀀠 (P0 ) 􀀎 g Gordon’s growth approximation g = bre The weighted average cost of capital 1 3 WACC = Ve Ve + Vd ke + kd(1–T) The Fisher formula (1 + i) = (1 + r) (1 + h) Purchasing power parity and interest rate parity (1 􀀎 h ) (1 􀀎 i ) S1 = S0 × ~~ ~~c~~ ~~ F0 = S0 × ~~ ~~c~~ ~~ (1 􀀎 hb ) (1 􀀎 ib ) Present value table Present value of 1 i.e. (1 + r)–n Where r = discount rate n = number of periods until payment Periods Discount rates (r) (n) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% | 1 | 0.990 | 0.980 | 0.971 | 0.962 | 0.952 | 0.943 | 0.935 | 0.926 | 0.917 | 0.909 | 1 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 2 | 0.980 | 0.961 | 0.943 | 0.925 | 0.907 | 0.

Jul 17, 2026

Uploaded by Theodore