Debt or Equity – That is the Big Question?

UK interest rates have risen again this week. This trend will continue for the foreseeable future. The borrowing cost burden on companies (& individuals) is now a major problem. The issue is exacerbated by the rise in the yield on UK government bonds. The mostly...

Asset Based Valuations

Business Valuation questions regularly appear in the objective test questions in ACCA FM. There four categories of valuations: Asset Based Earnings Dividends Cash Flows This blog looks at the first of these. An asset valuation is based upon this equation : Net Assets...

Only Lionel Richie Can Dance on The Ceiling 😀

In this blog, I want to cover a topic that is part of Interest Rate Risk Hedging within the ACCA AFM syllabus. In particular, to ensure that you don’t make a common error made by many students. The collar hedge has a very clear purpose. It is designed to protect the...

Timing To Pass

The traditional line of thinking, when it comes to exam timing, is minutes per marks. It has stood the test of “time” but for my exams, I look at things differently. For ACCA FM, I would recommend you keep it simple & divide the time into 4 x 45mins. Also, I would...

How Did You Get To That Rating ?

Whether it is presented as letters (eg AAA), letters & numbers (eg Baa 1) or purely a number (564/1000), an entity’s credit rating is a key value. Lenders in particular use this value to assess not only the safety of their commitment, but also the interest rate...