FM Question Pack Final

Jul 17, 2026

Uploaded by Theodore

Financial Management (FM) Question Pack Final consolidates three case-based problem sets focused on working capital management and cost of capital decision-making. Dusty Co evaluates inventory ordering policy using economic order quantity, quantifies cost impact of adopting bulk order discounts, and recommends an optimal choice; it also examines working capital funding strategy drivers. Dink Co compares borrowing versus leasing for a machine purchase under tax, depreciation, and cash constraints, then discusses investment capital rationing and remedies. Corfe Co analyzes capital structure instruments and equity and debt cost assumptions, then applies them to facility investment planning.

LanguageEnglish

CategoryExam

FormatPDF

Pages34

Reading Time1 h 26 min

AccessFree to download

Financial Management (FM) Question Pack | S. No | Question | ACCA Exam Paper | Topics Covered | | --- | --- | --- | --- | | | | | | | 1 | Dusty Co | Sep/Dec 2019 | Working Capital Management | | 2 | Dink Co | Sep/Dec 2019 | Investment Appraisal (Lease Vs Buy) | | 3 | Corfe Co | Mar/Jun 2019 | Estimating the cost of capital | | 4 | Pinks Co | Mar/Jun 2019 | Investment Appraisal | | 5 | Melanie Co | Sep/Dec 2018 | Investment Appraisal | | 6 | Oscar Co | Sep/Dec 2018 | Working Capital Management | | 7 | Tin Co | Mar/Jun 2018 | Sources of Finance | | 8 | Copper Co | Mar/Jun 2018 | Investment Appraisal | | 9 | Tufa Co | Sep/Dec 2017 | Sources of Finance and WACC | | 10 | Pelta Co | Sep/Dec 2017 | Investment Appraisal | | 11 | Pangli Co | Mar/Jun 2017 | Working Capital Management | | 12 | Vyxyn Co | Mar/Jun 2017 | Risk, Uncertainty and Investment Appraisal | | 13 | Nesud Co | Sep 2016 | Working Capital Management | | 14 | Hebac Co | Sep 2016 | Investment Appraisal and CAPM | | 15 | Cargo Co | Mar/Jun 2016 | Overtrading | | 16 | Palm Co | Mar/Jun 2016 | Interest Rate Hedging | | 17 | Plot | Dec 2013 | Working Capital Management | | 18 | Darn | Dec 2013 | Investment Appraisal | | 19 | Card | Dec 2013 | Cost of Equity | | 20 | GWW | Dec 2014 | Business Valuations | | 21 | TGA | June 2013 | Working Capital and Risk Management | | 22 | Wobnig | June 2012 | Working Capital Management | | 23 | Spot | Dec 2013 | Investment Appraisal | | 24 | Close | Dec 2011 | WACC and Business Valuations | | 25 | PV Co | Dec 2014 | Investment Appraisal | | 26 | DD Co | Dec 2014 | Sources of Finance | DUSTY CO Dusty Co wishes to improve its working capital management as part of an overall cost-cutting strategy to increase profitability. Two areas the company has been considering are working capital funding strategy and inventory management. Dusty Co currently follows a policy of financing working capital needs as much as possible from long-term sources of finance, such as equity. The company has been considering its inventory management and has been looking specifically at component K. Current position Dusty Co purchases 1,500,000 units of component K each year and consumes the component at a constant rate. The purchase price of component K is $14 per unit. The company places 12 orders each year. Inventory of component K in the financial statements of Dusty Co is equal to average inventory of component K. The holding cost of component K, excluding finance costs, is $0.21 per unit per year. The ordering cost of component K is $252 per order. Economic order quantity Dusty Co wishes to investigate whether basing ordering of component K on the economic order quantity will reduce costs. Bulk order discount The supplier of component K has offered Dusty Co a discount of 0.5% on the purchase price of component K, provided the company orders 250,000 units per order. Other information Dusty Co has no cash but has access to short-term finance via an overdraft

Jul 17, 2026

Uploaded by Theodore