Debt or Equity – That is the Big Question?

by | Sep 25, 2022 | General

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

by | Aug 15, 2022 | General

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 😀

by | Aug 4, 2022 | General

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

by | Jun 2, 2022 | General

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 ?

by | May 23, 2022 | General

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...