Exam Tips for P4 Students. BPP P4 • Discounted cash flow – possibly with an overseas context. • Business valuations – cost of capital and hedging. • Risk management. • The Black Scholes model. • Cost of capital calculations. • Islamic finance First Intuition P4 * International investment appraisal techniques focusing on risk management tools such as value at risk. * Impact on WACC following hedging of interest rate risk. * Company valuation based scenario, possible MBO finance to structure. * Adjusted present value with link to real options and Black Scholes option pricing model. Kaplan Financial P4 • Business valuation, especially using the free cash flow to firm methodology. • Net Present Value – including foreign currency cash flows. • Black Scholes option pricing model. • Discussion of financing options, including Islamic finance. • Interest rate hedging – options, futures and FRAs. P4 LSBF cost of capital using the principles of Modigliani and Miller prepositions or geared and ungeared betas. - International investment appraisal with adjusted present values or net present values. - Mergers and acquisitions - valuation using free cash flows, defensive tactics and regulations of takeovers - capital reconstruction schemes - designing a capital reconstruction scheme or assessing the success of a given scheme - option pricing theory. Real options, example, option to abandon, expand and delay. Valuation of company using the Black-Scholes option pricing model and delta hedge. - hedging exchange rate and interest rate risk using futures, options and swaps - Islamic finance
Posted on: Fri, 15 Nov 2013 14:35:01 +0000
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