CAP1 Finance Mind Map
Mind Maps are a useful way of summarising detailed competency statements into useful study aids.
The mind map is available to download in PDF – just click on the image to the left.
CAP1 Finance Past Paper Analysis
This analysis provides an overview of the topics examined in the compulsory questions (Q1&2) in recent years. It also includes a breakdown of marks across computational and narrative elements.
The variety of topics examined in Q1&2 and the weighting of marks for narrative requirements should be noted by students.
This analysis is available to download in PDF – just click on the image to the left.
Financial Environment
This screencast covers Autumn 2016 Q6
Key areas include;
- Corporate governance;
- Business ethics; and
- Role of government.
This screencast covers Summer 2017 Q4
Key areas include;
- Corporate governance;
- Financial markets; and
- Professional ethics.
Investment Appraisal
This screencast covers Summer 2017 Q2
Key areas include;
- IRR;
- NPV; and
- Sensitivity Analysis
This screencast covers Autumn 2014 Q2
Key areas include;
- Annuities and use of the discount tables;
- Sensitivity analysis – both computational and narrative; and
- Other factors to consider in investment appraisal.
This screencast covers Summer 2014 Q7
Key areas include;
- Hard & soft capital rationing;
- ARR calculation; and
- Profitability index including mutually exclusive and divisible projects
This excel file provides an overview of the IRR interpolation process and its relationship with NPV
Working Capital Management
This screencast covers Summer 2016 Q3 (WCM)
Key areas include;
- Working capital cycle calculations;
- Effective cost of discounts; and
- Trade payable management.
This screencast covers Summer 2015 Q2 (Inventory)
Key areas include;
- Economic Order Quantity Model
- Reorder point calculation; and
- Volume discount calculations.
This screencast covers Summer 2014 Q4 (Trade Receivables)
Key areas include;
- Assessing credit proposals for trade receivables;
- Non-financial considerations when offering a discount; and
- Effective annual cost of a discount.
Ratios
This screencast covers Summer 2017 Q6
Key areas include;
- Applied style question;
- Ratios; and
- Cost of equity and cost of debt
This screencast covers Summer 2013 Q7
Key areas include;
- Ratios & Working Capital Management; and
- Cash conversion cycle – calculation & interpretation.
This screencast covers Summer 2016 Q1(a)
Key areas include;
- Investment Ratios – Personal Finance; and
- Exam technique for narrative requirements- CAP1 Finance.
Ratios are an important part of CAP1 Finance that are relevant for working capital management, financing decisions, and personal finance.
The summary document on the left provides an overview of the five key pillars of ration analysis, the key ratios in each pillar, as well as providing examples of past exam questions for each pillar.
The table is available to download in PDF – just click on the image to the left.
Financing Decisions
This screencast covers Autumn 2016 Q1
Key areas include;
- Weighted average cost of capital (WACC) calculations; and
- Sources of finance.
This screencast covers Summer 2018 Q4
Key areas include;
- Weighted average cost of capital (WACC) calculations; and
- CAPM.
This screencast covers Summer 2014 Q1
Key areas include;
- Pros and cons of debt in a capital structure; and
- Impact of various capital structures on key ratios.