What is the most effective way to Prepare for the CA Inter Financial Management and Economic Forecasting exam. So that you may simply solve the problems, start with the core theory and formulas of the chapters. Make an effort to comprehend how formulas are created so that they will stick in your mind for a longer amount of time. You might begin with the most critical issue, Cash Flow and Fund Flow. Either the Cash Flow or the Fund Flow will undoubtedly raise a question.
Then choose a short chapter to boost your confidence, such as Leverage, which is a formula-based chapter, but if your concepts are clear and you understand the formulas rather than memorising them, it is the simplest and shortest.
Then you can proceed to Capital Budgeting and meticulously prepare the figures. . The payback period, PI, ARR, NPV, and IRR are all factors to consider. Every approach is vital, but NPV and IRR are the
most crucial of all the topics, so prepare them thoroughly. Pick a short chapter, such as Ratios, which is a formula-based chapter, and read and grasp the formulae before beginning to solve questions. Then you can finish Cost of Capital, Leasing, Working Capital Management, and Capital Structure. Prepare the theoretical and the practical section thoroughly.
Each topic in Economics for Finance should be covered.
Financial Management & Economics For Finance |
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Financial Management |
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Chapter No. |
Name of Chapters |
Marks Weightage |
1 | Scope and Objectives of Financial Management | 12 |
2 | Types of Financing | 10 |
3 | Financial Analysis and Planning – Ratio Analysis | 8 |
4 | Cost of Capital | 10 |
5 | Financing Decisions – Capital Structure | 12 |
6 | Financing Decisions – Leverages | 10 |
7 | Investment Decisions | 14 |
8 | Risk Analysis in Capital Budgeting | 12 |
9 | Dividend Decisions | 15 |
10 | Management of Working Capital | 15 |
ECONOMICS FOR FINANCE
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11 | Determination of National Income | 15 |
12 | Public Finance | 18 |
13 | Money Market | 12 |
14 | International Trade | 15 |
Financial Management and Economics for Finance are divided into two sections: Financial Management, which carries a 60-point weighting, and Economics for Finance, which carries a 40-point weighting.