Areas Bond Valuation – 7 marks Annuity – 5 marks Delayed Perpetuity – 5 marks WACC – 5 marks
Investment Appraisal Techniques (NPV / IRR) – 12 marks Section B (66% of the examination mark) Need to use relevant sources Topic Areas Portfolio Theory – Markowitz contribution / Efficient Frontier / Capital Ma​‌‍‍‍‌‍‍‌‍‌‌‍‍‍‌‍‌‌‌‍​rket Theory Development of CAPM – How CAPM developed / Capital market Theory / Empirical evidence in favour against CAPM Efficient Markets Hypothesis – Concepts / Levels of efficiency / Relevance Dividend Theory – Opposing views / M&M contribution to theory Capital Structure – Can it affect firm value? / M&M views / Opposing views Real Options – Usefulness to firms as part of project evaluation / options terminology / PUT / CALL CHOOSE 3 TOPICS FROM THE 6 TOPICS ABOVE Choices 1. Portfolio Theory 2.Efficient Markets Hypothesis 3.​‌‍‍‍‌‍‍‌‍‌‌‍‍‍‌‍‌‌‌‍​Dividend Theory or CAPM