F9 topics tested again in P4?

Updated: Aug 19, 2019


P4 is an advanced level option examination extending the knowledge and skills from F9, Financial Management. P4 focuses on how students apply their financial management knowledge in different scenarios or cases.


From P4 Examiner Report, we find the examiner expects candidates are familiar with the following topics from F9.

Foreign exchange

In Mar 16 and Sep 17 P4 exams, Question 1 in these two diets asked about international finance. 1 of the key topic is Purchasing Power Parity but Examiner disappointed the performance as not many candidates can apply Purchasing Power Parity to forecast future exchange rate. In addition, financial instruments for risk management, such as forward, is another hot topic from F9 but tested in P4.

Investment appraisal

Even P4 is asking students some more advanced financial management knowledge and skills, the core skills in F9 cannot be ignored. Under investment appraisal, hot topics in F9 such as calculating free cash flow with inflation, depreciation allowance and tax benefits in cash flow are expected to be seen in P4 too (Sep 16).

Business Finance

Modigliani-Miller (MM) capital structure theories was introduced in F9, but in P4, students are required to extend their knowledge from MM theory without tax to the theory with tax (Mar 17). Students are expected to be clear on MM theory and extend from no tax world to a world with tax.

The table on top summarizing P4 examiner’s comments on any topic relevant to F9. It should help P4 students in preparing their exam, especially Dec 17 diet.

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