Test questions on the following Topics

B. Corporate Finance (20% - Levels A, B, and C)

1. Risk and return a. Calculating return b. Types of risk c. Relationship between risk and return

2. Long-term financial management a. Term structure of interest rates b. Types of financial instruments c. Cost of capital d. Valuation of financial instruments

3. Raising capital a. Financial markets and regulation b. Market efficiency c. Financial institutions d. Initial and secondary public offerings e. Dividend policy and share repurchases f. Lease financing

4. Working capital management a. Working capital terminology b. Cash management c. Marketable securities management d. Accounts receivable management e. Inventory management f. Types of short-term credit g. Short-term credit management

5. Corporate restructuring a. Mergers and acquisitions b. Bankruptcy c. Other forms of restructuring

6. International finance a. Fixed, flexible, and floating exchange rates b. Managing transaction exposure c. Financing international trade d. Tax implications of transfer pricing

E. Investment Decisions (15% - Levels A, B, and C)

1. Capital budgeting process

a. Stages of capital budgeting

b. Incremental cash flows

c. Income tax considerations

2. Discounted cash flow analysis

a. Net present value

b. Internal rate of return

c. Comparison of NPV and IRR

3. Payback and discounted payback

a. Uses of payback method

b. Limitations of payback method

c. Discounted payback

4. Risk analysis in capital investment

a. Sensitivity and scenario analysis