Study guide · design draft

Study guide · ICAN CAP-II

What ICAN has set in the last 10 sessions (Dec 2021 to Jun 2026), ranked so you revise the right things first. A ranking of past papers, not a prediction.

Start with Tier S

Questions: 230
Marks: 1000
From computation: 75%
Theory and short notes: 21%
Marks a question: 2.5 typical, 20 largest

How topics are ranked

Plain counting from past papers

For each topic we count how many of the last 10 exam sessions asked it. A topic ICAN keeps setting is likely to come again, so the more sessions that asked it, the higher it ranks. Topics asked equally often are ordered by their marks.

Tier SLearn first

Asked in 8 or more of the 10 sessions. Practise every question until you can do it without the answer.

3 topics

Tier ALearn next

Asked in 6 or 7 of the 10 sessions. Learn the method and solve at least one question of each kind.

10 topics

Tier BIf time allows

Asked in 3 to 5 of the 10 sessions. Read the answers once; come back after Tiers S and A.

17 topics

Tier CRead once

Asked in 1 or 2 of the 10 sessions. Rarely set, but still in the syllabus.

4 topics

We checked this against the last six papers: the 10 most-asked topics held about half of each paper's marks. It is a pattern from past papers, not a promise of what will be asked.

Topics that carry the marks

One topic is one kind of question; most-asked first

1NPV of a project with relevant cash flowsCapital Investment Decisionusually 16 markslast asked Jun 2026Tier S10/10
2Receivables management and credit policyWorking Capital Management & Financial Forecastingusually 8 markslast asked Jun 2026Tier S8/10
3CAPM, beta and the security market lineIntroduction & Fundamental Concepts of Financial Managementusually 5 markslast asked Jun 2026Tier S8/10
4Operating, financial and combined leverageStrategic Finance Decision and Policyusually 7.5 markslast asked Jun 2026Tier A7/10
5EBIT-EPS analysis and choice of financing planStrategic Finance Decision and Policyusually 7 markslast asked Dec 2025Tier A7/10
6Capital structure theories and value of the firmStrategic Finance Decision and Policyusually 5 markslast asked Jun 2026Tier A7/10
7Mutual funds: NAV and returnOverview of Capital Marketusually 5 markslast asked Dec 2025Tier A7/10
8Estimation of working capital requirementWorking Capital Management & Financial Forecastingusually 10 markslast asked Dec 2025Tier A6/10
9Share valuation (dividend and earnings models)Valuation of Securitiesusually 6.5 markslast asked Jun 2026Tier A6/10
10Ratio analysis: computation and interpretationAnalysis of Financial Statementsusually 7.5 markslast asked Dec 2025Tier A6/10
11Time value of moneyIntroduction & Fundamental Concepts of Financial Managementusually 5 markslast asked Jun 2026Tier A6/10
12Money market, capital market and their instrumentsOverview of Capital Marketusually 2.5 markslast asked Jun 2026Tier A6/10
13Start-up and alternative financing (venture capital, private equity, angel, crowd funding, P2P)Strategic Finance Decision and Policyusually 2.5 markslast asked Jun 2026Tier A6/10

Show 21 more topics (Tier B and C)Hide Tier B and C topics

14Cost of capital and WACCStrategic Finance Decision and Policyusually 7 markslast asked Dec 2024Tier B5/10
15Cash management: models, float and fund transferWorking Capital Management & Financial Forecastingusually 5 markslast asked Jun 2024Tier B5/10
16Other long-term sources, instruments and restructuringStrategic Finance Decision and Policyusually 2.5 markslast asked Jun 2026Tier B5/10
17Investment appraisal: theory and critiqueCapital Investment Decisionusually 4 markslast asked Jun 2024Tier B5/10
18Risk concepts (theory)Introduction & Fundamental Concepts of Financial Managementusually 2.5 markslast asked Jun 2026Tier B5/10
19Objectives and decisions of financial managementIntroduction & Fundamental Concepts of Financial Managementusually 2.5 markslast asked Dec 2025Tier B5/10
20Cash budget and financial forecastingWorking Capital Management & Financial Forecastingusually 8 markslast asked Jun 2026Tier B4/10
21MM dividend irrelevanceDividend Decisionusually 7 markslast asked Dec 2025Tier B4/10
22FactoringWorking Capital Management & Financial Forecastingusually 3.75 markslast asked Dec 2024Tier B4/10
23DuPont analysisAnalysis of Financial Statementsusually 5 markslast asked Dec 2025Tier B4/10
24Break-even selling price and sensitivity of NPVCapital Investment Decisionusually 4 markslast asked Jun 2026Tier B4/10
25Dividend policy: factors, residual and alternative policiesDividend Decisionusually 3.75 markslast asked Jun 2026Tier B4/10
26Secondary market: trading, participants and practicesOverview of Capital Marketusually 2.5 markslast asked Jun 2026Tier B4/10
27Portfolio risk and return (two securities)Introduction & Fundamental Concepts of Financial Managementusually 8 markslast asked Jun 2023Tier B3/10
28Primary market: public issues, book building and credit ratingOverview of Capital Marketusually 5 markslast asked Dec 2025Tier B3/10
29Walter's dividend modelDividend Decisionusually 5 markslast asked Dec 2024Tier B3/10
30Short-term bank financeWorking Capital Management & Financial Forecastingusually 2.5 markslast asked Dec 2024Tier B3/10
31Preparing financial statements from ratiosAnalysis of Financial Statementsusually 10 markslast asked Jun 2026Tier C2/10
32Lease financingStrategic Finance Decision and Policyusually 2.5 markslast asked Jun 2025Tier C2/10
33Bond valuation and yieldsValuation of Securitiesusually 8 markslast asked Dec 2024Tier C1/10
34Corporate (free cash flow) valuationValuation of Securitiesusually 7 markslast asked Jun 2022Tier C1/10

Revision packs

Tier S and A: 13 topics, what is asked, what to know, questions to solve

The checklists are our summaries, not ICAN's text. Check any rate, limit or section number against the current study material.

NPV of a project with relevant cash flowsCapital Investment DecisionTier S

What ICAN has asked. Build year-by-year relevant cash flows for a new product, machine or replacement and compute NPV (or expected NPV), often with inflation, tax and working capital. Usually the paper's first question, worth up to 20 marks.

Asked 10 times in 10 sessions for 167 marks (average 16.7, largest 20); 4 in the last two years; last asked Jun 2026.

What you must know

Relevant costs only: ignore sunk costs, allocated overheads and depreciation (except its tax shield)
Timing of each cash flow, stage payments and instalments
Nominal cash flows with specific inflation, nominal discount rate
Tax depreciation / capital allowances, tax paid in arrears, balancing allowance
Working capital investment and recovery
Expected value of demand from probabilities

Questions to solve, newest first

Jun 2026 Q1(i) 16 Dec 2025 Q1 20 Jun 2025 Q1(i) 15 Dec 2024 Q1(a) 16 Jun 2024 Q1(a) 16 Dec 2023 Q1(a) 13 Jun 2023 Q1(a) 16 Dec 2022 Q1(ii) 15 Jun 2022 Q1 20 Dec 2021 Q1 20

Receivables management and credit policyWorking Capital Management & Financial ForecastingTier S

What ICAN has asked. Evaluate a change in credit period, cash discount, collection effort or credit to one customer by comparing incremental profit with bad debts, discount and the cost of funds in receivables; note on ageing schedule.

Asked 9 times in 8 sessions for 58 marks (average 6.4, largest 8); 4 in the last two years; last asked Jun 2026.

What you must know

Incremental contribution from extra sales
Investment in receivables = cost of sales x collection period / 360 (variable or total cost as told)
Opportunity cost = investment x required return
Bad debts and cash discount cost before and after
Choose the policy with the highest net benefit
Ageing schedule classifies debtors by age

Questions to solve, newest first

Jun 2026 Q3(b) 7 Jun 2025 Q4(b) 7 Jun 2025 Q6(a) 2.5 Dec 2024 Q3(a) 8 Jun 2024 Q3(b) 7 Dec 2023 Q4(a) 8 Dec 2022 Q6(c) 2.5 Jun 2022 Q3(a) 8 Dec 2021 Q3(a) 8

CAPM, beta and the security market lineIntroduction & Fundamental Concepts of Financial ManagementTier S

What ICAN has asked. Compute required return or beta under CAPM and decide whether securities are under/over-valued or a portfolio should change; short notes and distinctions on SML, CML and beta.

Asked 12 times in 8 sessions for 44 marks (average 3.7, largest 5); 7 in the last two years; last asked Jun 2026.

What you must know

Required return = Rf + beta x (Rm - Rf)
Expected return above CAPM return = undervalued (buy); below = overvalued (sell)
Beta = correlation x SD of security / SD of market; portfolio beta = value-weighted betas
SML uses beta and covers all securities; CML uses standard deviation and covers efficient portfolios only
Asset beta = weighted average of equity beta and debt beta
Holding period return = (capital gain + dividend) / opening value

Questions to solve, newest first

Jun 2026 Q4(b)(i) 3 Jun 2026 Q4(b)(ii) 4 Dec 2025 Q5(b) 5 Jun 2025 Q2(b) 5 Dec 2024 Q7(a) 2.5 Dec 2024 Q2(b) 5 Dec 2024 Q7(c) 2.5 Jun 2024 Q6(d) 2.5 Jun 2023 Q6(c) 2.5 Dec 2022 Q3(b)(i) 4 Dec 2022 Q3(b)(ii) 3 Jun 2022 Q5(b) 5

Operating, financial and combined leverageStrategic Finance Decision and PolicyTier A

What ICAN has asked. Work backwards from given degrees of leverage to build an income statement, EBIT, interest, EPS or debt; theory on leverage effects and business versus financial risk.

Asked 11 times in 7 sessions for 47.5 marks (average 4.3, largest 6); 5 in the last two years; last asked Jun 2026.

What you must know

DOL = contribution / EBIT
(EBT after grossed-up preference dividend)
x DFL = % change in EPS / % change in sales
If an x% fall in sales wipes out EPS, / x
P/V ratio = contribution / sales; / P/E
Business risk (EBIT variability) versus financial risk (debt)

Questions to solve, newest first

Jun 2026 Q5(a) 5 Jun 2026 Q7(a) 2.5 Dec 2025 Q5(c) 5 Dec 2024 Q2(a)(i) 6 Dec 2024 Q2(a)(ii) 4 Jun 2024 Q5(b) 5 Jun 2024 Q7(b) 2.5 Dec 2023 Q5(b) 5 Dec 2022 Q5(a) 5 Dec 2022 Q5(b) 5 Dec 2021 Q7(a) 2.5

EBIT-EPS analysis and choice of financing planStrategic Finance Decision and PolicyTier A

What ICAN has asked. Compute EPS under alternative financing plans, find the EBIT indifference point, and recommend the plan (sometimes via probable share price or a required EBIT).

Asked 9 times in 7 sessions for 47 marks (average 5.2, largest 8); 2 in the last two years; last asked Dec 2025.

What you must know

EPS = (EBIT - I)(1 - t) - preference dividend, divided by number of shares
Indifference point: set EPS of plan 1 equal to EPS of plan 2 and solve for EBIT
Above the indifference EBIT the more leveraged plan gives higher EPS
Market price = EPS x P/E ratio
Work back from dividend and payout to EAT, EBT and EBIT

Questions to solve, newest first

Dec 2025 Q2(b) 5 Jun 2025 Q4(a) 8 Jun 2024 Q4(b) 7 Dec 2023 Q4(b)(i) 4 Dec 2023 Q4(b)(ii) 2 Dec 2023 Q4(b)(iii) 1 Jun 2023 Q5(a) 5 Jun 2022 Q4(b) 7 Dec 2021 Q4(a) 8

Capital structure theories and value of the firmStrategic Finance Decision and PolicyTier A

What ICAN has asked. Value firms and compute overall cost of capital under NI/MM assumptions, show the MM arbitrage process, pick the optimal debt mix, and write notes on pecking order and financial distress.

Asked 11 times in 7 sessions for 46.5 marks (average 4.2, largest 7); 5 in the last two years; last asked Jun 2026.

What you must know

NI approach: value of equity = NI / Ke, value of debt = interest / Kd, Ko = EBIT / V
WACC before and after a debt-financed proposal with no tax
MM arbitrage: sell holding in overvalued firm, use personal borrowing or lending to keep the same risk, compare income
Optimal capital structure = debt proportion with the lowest WACC
Pecking order: internal funds, then debt, then new equity
Financial distress: direct and indirect costs; distress versus insolvency

Questions to solve, newest first

Jun 2026 Q5(c) 5 Jun 2025 Q3(b) 7 Jun 2025 Q5(b) 5 Dec 2024 Q6(d) 2.5 Dec 2024 Q7(b) 2.5 Dec 2023 Q6(d) 2.5 Dec 2022 Q2(b) 5 Jun 2022 Q2(b) 5 Jun 2022 Q6(b) 2.5 Jun 2022 Q7(c) 2.5 Dec 2021 Q3(b) 7

Mutual funds: NAV and returnOverview of Capital MarketTier A

What ICAN has asked. Compute NAV per unit before and after new units or investments, or the investor return with distributions paid out versus reinvested.

Asked 7 times in 7 sessions for 34.5 marks (average 4.9, largest 7); 3 in the last two years; last asked Dec 2025.

What you must know

NAV per unit = (market value of assets + cash - liabilities) / units
New units issued at NAV; cash from subscription adds to assets
Return = (change in NAV + dividend + capital gain distribution) / opening NAV
Reinvested distributions buy extra units at the reinvestment NAV
Open-ended versus close-ended funds

Questions to solve, newest first

Dec 2025 Q4(b) 7 Jun 2025 Q5(c) 5 Dec 2024 Q5(b) 5 Jun 2024 Q2(b) 5 Dec 2022 Q5(c) 5 Jun 2022 Q7(a) 2.5 Dec 2021 Q5(b) 5

Estimation of working capital requirementWorking Capital Management & Financial ForecastingTier A

What ICAN has asked. Prepare a statement of working capital needed from cost and holding-period data (cash cost or total cost basis, or operating cycle method) and show the effect of a policy change.

Asked 11 times in 6 sessions for 56 marks (average 5.1, largest 10); 2 in the last two years; last asked Dec 2025.

What you must know

Raw material, WIP, finished goods and debtors valued at the right cost for their holding periods
Cash cost basis excludes depreciation and profit
Deduct creditors and outstanding wages/expenses
Operating cycle = R + W + F + D - C; working capital = operating cost / number of cycles
Add desired cash balance / safety margin

Questions to solve, newest first

Dec 2025 Q2(a)(i) 6 Dec 2025 Q2(a)(ii) 4 Jun 2024 Q4(a) 8 Jun 2023 Q2(a)(i) 8 Jun 2023 Q2(a)(ii) 2 Dec 2022 Q2(a) 10 Jun 2022 Q4(a)(i) 3 Jun 2022 Q4(a)(ii) 2 Jun 2022 Q4(a)(iii) 1 Jun 2022 Q4(a)(iv) 2 Dec 2021 Q2(a) 10

Ratio analysis: computation and interpretationAnalysis of Financial StatementsTier A

What ICAN has asked. Compute liquidity, activity, profitability, gearing and market ratios from given statements and comment on the financial position.

Asked 12 times in 6 sessions for 40 marks (average 3.3, largest 8); 2 in the last two years; last asked Dec 2025.

What you must know

Current and quick ratio; proprietary ratio
Inventory turnover, debtors collection period
GP and NP ratio, ROCE, ROE
Debt-equity, capital gearing, interest coverage
Dividend yield, P/E, market-to-book, price to cash flow
Limitations of ratio analysis

Questions to solve, newest first

Dec 2025 Q6(d) 2.5 Jun 2025 Q3(a) 8 Dec 2023 Q2(a)(i) 2 Dec 2023 Q2(a)(ii) 2 Dec 2023 Q2(a)(iii) 2 Dec 2023 Q2(a)(iv) 2 Dec 2023 Q2(a)(v) 2 Dec 2022 Q6(a) 2.5 Jun 2022 Q2(a)(i) 5 Jun 2022 Q2(a)(ii) 5 Dec 2021 Q4(b)(i) 2 Dec 2021 Q4(b)(ii) 5

Time value of moneyIntroduction & Fundamental Concepts of Financial ManagementTier A

What ICAN has asked. Find the periodic deposit or lump sum needed to reach a target future sum (ordinary annuity, annuity due, single sum), plus short theory on perpetuity and effective rates.

Asked 8 times in 6 sessions for 25 marks (average 3.1, largest 5); 5 in the last two years; last asked Jun 2026.

What you must know

Sinking fund payment = FV / FVIFA(n, i)
Annuity due payment = ordinary payment / (1 + i)
Lump sum = FV / FVIF(n, i); semi-annual compounding uses i/2 and 2n
Growing annuity: deposits growing at g while earning i
Perpetuity PV = C / i
Effective rate = (1 + i/m)^m - 1

Questions to solve, newest first

Jun 2026 Q5(b) 5 Dec 2025 Q5(a) 5 Dec 2024 Q5(a)(i) 1.5 Dec 2024 Q5(a)(ii) 1.5 Dec 2024 Q5(a)(iii) 2 Dec 2023 Q7(d) 2.5 Jun 2023 Q5(c) 5 Dec 2021 Q6(c) 2.5

Money market, capital market and their instrumentsOverview of Capital MarketTier A

What ICAN has asked. Distinctions and short notes on money versus capital market and on money market instruments (repo, T-bills, CDs, bank rate).

Asked 8 times in 6 sessions for 20 marks (average 2.5, largest 2.5); 5 in the last two years; last asked Jun 2026.

What you must know

Money market: up to one year; capital market: long term
Instruments: T-bills, CDs, commercial paper, repo versus shares, bonds, debentures
Repo: sale with agreement to repurchase, a collateralised short-term loan
Bank rate versus repo rate as central bank lending rates

Questions to solve, newest first

Jun 2026 Q7(d) 2.5 Dec 2025 Q7(d) 2.5 Dec 2025 Q6(c) 2.5 Dec 2025 Q7(a) 2.5 Jun 2025 Q7(a) 2.5 Jun 2024 Q6(a) 2.5 Dec 2023 Q7(b) 2.5 Jun 2023 Q6(d) 2.5

Start-up and alternative financing (venture capital, private equity, angel, crowd funding, P2P)Strategic Finance Decision and PolicyTier A

What ICAN has asked. Short notes and distinctions on newer sources of equity and loan finance for young firms.

Asked 7 times in 6 sessions for 17.5 marks (average 2.5, largest 2.5); 2 in the last two years; last asked Jun 2026.

What you must know

Venture capital: early stage, minority stake; private equity: mature firms, control stake
Angel investors: individuals funding very early stage
Crowd funding: many small contributors via online platforms
Peer-to-peer lending: platform matches lenders and borrowers without a bank

Questions to solve, newest first

Jun 2026 Q7(c) 2.5 Jun 2025 Q6(d) 2.5 Jun 2024 Q7(a) 2.5 Dec 2023 Q6(a) 2.5 Dec 2023 Q7(c) 2.5 Jun 2023 Q6(b) 2.5 Dec 2022 Q6(b) 2.5

Questions that came back

The cheapest marks to prepare

Asked again word for word, or nearly so.

Venture capital vs private equityDec 2023 Q7(c) → Jun 2024 Q7(a) → Jun 2026 Q7(c)Distinguish "Venture Capital and Private Equity" asked three times in the same words.
Effect of leverage on capital turnover ratio and working capital ratioJun 2024 Q7(b) → Jun 2026 Q7(a)Distinguish "Effect of leverage on Capital Turnover (Ratio) and Working Capital Ratio" asked again unchanged.
Credit ratingJun 2022 Q6(c) → Dec 2025 Q6(b)Short note "Credit Rating"; the later one adds "& its significance".
Repurchase agreements (repo)Jun 2023 Q6(d) → Dec 2025 Q6(c)Short note "Repurchase agreements" asked again unchanged.
Capital market versus money marketJun 2025 Q7(a) → Dec 2025 Q7(d)Distinguish money market and capital market; only the order of the two terms changed.

Show 10 moreHide 10

Ageing schedule of receivablesDec 2022 Q6(c) → Jun 2025 Q6(a)Short note "Ageing schedule" asked again unchanged.
Exchange traded market vs over the counter (OTC) marketDec 2022 Q7(d) → Jun 2025 Q7(b)Distinguish "Exchange traded market and Over the counter market" asked again unchanged.
Financing decision vs investment decisionJun 2023 Q7(a) → Jun 2025 Q7(c)Distinguish investment decision and financing decision; only the order of the two terms changed.
Factors determining dividend policyJun 2023 Q6(a) → Jun 2025 Q6(b)Short note on factors affecting / determining dividend policy; trivial wording change only.
Crowd fundingDec 2023 Q6(a) → Jun 2025 Q6(d)Short note "Crowd funding" asked again unchanged.
Pecking order theoryJun 2022 Q6(b) → Dec 2024 Q6(d)Short note "Pecking order theory" asked again unchanged.
Debt securitizationDec 2023 Q6(c) → Dec 2024 Q6(c)Short note "Debt Securitization" asked again unchanged.
Book building processJun 2022 Q6(a) → Jun 2024 Q6(b)Short note "Book Building" / "Book Building Process".
Discrete vs continuous probability distributionDec 2022 Q7(b) → Jun 2024 Q7(d)Distinguish "Discrete probability distribution and Continuous probability distribution" asked again unchanged.
Security Market Line (SML)Jun 2023 Q6(c) → Jun 2024 Q6(d)Short note "Security Market Line" asked in the same words.

Same structure and method, different numbers or facts.

NPV of a new product projectDec 2023 Q1(a) → Jun 2026 Q1(i)Same new-product NPV case (R&D already spent, site purchase, factory built over two years with stage payments, machinery paid in instalments, three-year advertising campaign) re-set with a new company and partly changed figures and dates.
Minimum (break-even) selling priceDec 2023 Q1(b) → Jun 2026 Q1(ii)Same follow-on requirement to that case: minimum selling price that makes the NPV zero.
Time value of moneyDec 2024 Q5(a)(i) → Dec 2024 Q5(a)(ii) → Dec 2024 Q5(a)(iii) → Jun 2026 Q5(b)Amount needed to reach a target sum in three variants: year-end annual payments, a lump sum, and beginning-of-year payments; different person, amount, rate and period.
Evaluation of a change in credit policyDec 2024 Q3(a) → Jun 2026 Q3(b)Evaluate liberalising cash discount terms (same net period, higher discount) with higher sales, shorter collection period, more customers taking discount and tax; different figures, bad debts added in 2026.
Modigliani-Miller dividend irrelevanceDec 2022 Q4(b)(i) → Dec 2022 Q4(b)(ii) → Dec 2022 Q4(b)(iii) → Jun 2024 Q3(a) → Dec 2024 Q3(b) → Dec 2025 Q3(b)MM dividend irrelevance in the same three steps: year-end price with and without dividend, new shares for the investment budget, proof that firm value is unchanged. Different figures; June 2024 reuses the December 2022 shares, price, budget and profit with a new dividend and capitalisation rate; December 2024 gives Ke through a P/E ratio.

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Operating, financial and combined leverageJun 2024 Q5(b) → Dec 2025 Q5(c)Find EPS (and in 2025 the debt) from contribution and operating leverage, given the percentage fall in sales that wipes out EPS; different figures, preference shares in 2024 versus debt in 2025.
Weighted average cost of capital before and after a debt-financed proposalJun 2022 Q2(b) → Jun 2025 Q5(b)WACC before and after a debt-financed proposal with no tax and no new equity; new company and figures, and the later one also re-prices the old debt at 8%.
Mutual fund holding period return with and without reinvestment of distributionsDec 2024 Q5(b) → Jun 2025 Q5(c)Mutual fund return when dividend and capital gain distributions are paid out versus reinvested at a stated average NAV; only the figures changed.
Capital Asset Pricing Model (CAPM)Jun 2022 Q5(b) → Dec 2024 Q2(b)Compare given expected returns with CAPM required returns to say whether stocks are correctly priced; five stocks in 2022, two in 2024, different rates.
Preparing an income statement from leverage dataDec 2022 Q5(b) → Dec 2024 Q2(a)(i)Prepare an income statement working back from operating leverage, financial leverage, interest and a variable cost / P/V ratio; different figures.
Evaluation of alternative credit policiesDec 2021 Q3(a) → Jun 2022 Q3(a) → Dec 2023 Q4(a)Choose among alternative credit policies with longer collection periods by comparing incremental profit with bad debts and the required return on extra investment in debtors; different companies and figures.
Factoring decisionJun 2023 Q4(a) → Dec 2023 Q5(a)Decide whether to engage a factor: commission and (2023 June) interest on advance against savings in bad debts, administration cost and financing of a shorter collection period; different figures.
MM arbitrage between levered and unlevered firmDec 2021 Q3(b) → Dec 2022 Q2(b)MM arbitrage between a levered and an unlevered firm of the same business risk; figures changed and the switch runs the other way (unlevered to levered in 2021, levered to unlevered in 2022).
Net asset value of a mutual fundDec 2021 Q5(b) → Dec 2022 Q5(c)NAV of a mutual fund holding listed securities, re-computed after new units are subscribed at NAV, shares are bought from the proceeds and prices move the next day; different holdings and figures.

Different questions testing the same narrow point.

Constant growth dividend valuation modelDec 2021 Q5(a) → Jun 2026 Q4(a)(iii)Future share price under the constant-growth dividend model (price one to three years ahead).
Residual theory of dividendJun 2022 Q5(a) → Jun 2026 Q2(b)(ii)Dividend payable under a residual dividend policy after funding the equity part of an investment.
Money market instruments vs capital market instrumentsJun 2024 Q6(a) → Jun 2026 Q7(d)Money market instruments: as a short note, then distinguished from capital market instruments.
Estimation of working capital requirementDec 2021 Q2(a) → Dec 2022 Q2(a) → Jun 2024 Q4(a) → Dec 2025 Q2(a)(i)Working capital requirement from holding periods of stock and debtors less creditors and expense lags; data format differs each time (unit cost sheet, annual figures, projected P&L, cost-to-price ratios).
EBIT-EPS indifference pointDec 2021 Q4(a) → Dec 2023 Q4(b)(ii) → Dec 2025 Q2(b)EBIT indifference point between an all-equity plan and a plan using debt.

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Profit maximization versus wealth maximizationJun 2022 Q6(d) → Jun 2024 Q6(c) → Dec 2025 Q7(b)Profit maximisation as a goal and its weakness against wealth maximisation.
Cash budget, borrowing requirement and pro forma balance sheetJun 2023 Q3(b) → Jun 2024 Q2(a)(i) → Dec 2025 Q4(a)Three-month cash budget with lagged collections from credit sales and lagged payments for purchases.
DuPont analysisJun 2023 Q2(b) → Dec 2023 Q2(b) → Dec 2025 Q6(a)DuPont break-up of ROE into margin, asset turnover and equity multiplier, numerically in 2023 and as a short note in 2025.
Expected NPV with inflation, tax in arrears and working capitalJun 2022 Q1 → Jun 2025 Q1(i)Expected NPV where sales/demand must first be reduced to an expected value from given probabilities.
Sensitivity analysis of NPVDec 2024 Q1(b) → Jun 2025 Q1(ii)Sensitivity of NPV: how far a variable can move before NPV becomes zero.
Factoring vs bill discountingJun 2022 Q7(b) → Dec 2024 Q7(d)Factoring distinguished from a similar receivables-financing arrangement (forfaiting, then bill discounting).
Walter's dividend modelDec 2023 Q5(c)(ii) → Dec 2024 Q5(c)Walter's model with r greater than Ke: optimum payout ratio and the share price at that payout.
Financial distress vs insolvencyDec 2023 Q6(d) → Dec 2024 Q7(b)Meaning of financial distress (its costs in 2023, versus insolvency in 2024).
Cost of float and concentration bankingDec 2021 Q5(c) → Jun 2024 Q5(a)Value of speeding up collections: interest saved on reduced float compared with the cost of doing so.
Portfolio standard deviation with correlation 0.25Dec 2022 Q3(a)(iv) → Jun 2023 Q3(a)(ii)Standard deviation of a two-security portfolio using weights and correlation/covariance.

If time is short

Work down the tiers, not down the textbook

Tier S firstSolve every listed question, newest first, then redo the ones you got wrong.
Then the repeatsQuestions asked again in the same terms or with new figures.
Then Tier A, then BRead Tier C once: rarely asked is not out of syllabus.

Marks by question type

Share of 1000 marks over 10 sessions

Numerical73%
Short note10%
Distinguish between10%
Case/Application4%
Financial statements2%
Theory1%