As we are now three weeks into 2016 the focus for the majority of CAP1/2 students will firmly be on the various CAs taking place. However, it is also important that students take a step back and assess where their overall study plan is. Once the CAs are over the next big hurdle for students […]
Two important concepts that will be taught in any corporate finance module will be Net Present Value (NPV) and Internal Rate of Return (IRR). Both are investment appraisal techniques that are used to assess investment opportunities by businesses. Understanding both, and the relationship between them, is crucial for any finance student. To do this, students should […]
One common issue I find with a lot of accounting students (both at university and also at the professional exam stage) is they see their studies as the sole requirement or hurdle to becoming a capable and qualified businessperson. When I ask the majority of students if they read anything to keep up to date with business […]
One difficulty that many students encounter when studying finance (and also some areas of management accounting) is the various formulae that are required. From WACC, IRR, NPV, time value of money, bond valuation, there is a vast collection of formulae to understand and remember. (Some exams do provide a formula sheet but reliance on this […]
Raising finance at the start up stage can be one of the most difficult issues for a business. One important source of funding for young businesses can be business angels. These are wealthy private individuals who typically have had prior success with their own businesses and wish to invest capital in young growing businesses. This […]
For most accounting and finance students the principle that interest on debt is tax deductible and the requirement to incorporate this into a cost of capital calculation is something that is learned off and rarely questioned. It is unlikely that many students (or lecturers) stop and ask the question of why? And what impact does […]