introduction-to-finance-and-investments-past-papers
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UPLOADED BY Unknown
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DATE 06 Dec 2025
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SIZE 0.82 MB
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notes
About This Document
Document Type: This is a Past Paper, designed for Reviewing previous question patterns.
Context: Standard material from the 2025 academic period.
Key Content: Likely covers essential definitions, structured questions to test your proficiency.
Study Strategy: Attempt these questions under timed conditions to simulate a real exam environment, then check against your notes.
Recommendation: comprehensive resource for students aiming to deepen their understanding of General Studies.
Detailed Content Overview
Introduction
This notes resource titled "introduction-to-finance-and-investments-past-papers" provides comprehensive exam preparation materials designed to test and enhance your understanding. This resource is structured to facilitate effective learning and retention of important information.
Key Topics Covered
Learning Objectives
- Master key concepts required for examination success
- Practice answering exam-style questions effectively
- Develop time management skills for timed assessments
- Identify and address knowledge gaps in understanding
Detailed Summary
CIFA FOUNDATION LEVEL INTRODUCTION TO FINANCE AND INVESTMENTS WEDNESDAY: 20 August 2025. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper. (c) Makina Limited intends to raise finance as follows: op w. ch w • • • • Issue 1,000,000 ordinary shares of Sh. The floatation costs will be 10% of the market price of the share. Issue 500,000 8% preference shares of Sh. 10,000,000 through issue of 10% bonds at par. 1,000,000 from creditors through goods for resale arrangements. The ordinary shareholders expect a dividend of Sh. 5 per share with a growth rate of 6% per annum. Required: (i) The cost of ordinary shares. (2 marks) (ii) The cost of retained earnings. (2 marks) (iii) The cost of 8% preference shares. (2 marks) (iv) The cost of 10% bonds. (2 marks) (v) Calculate the marginal cost of capital (MCC). (4 marks) (Total: 20 marks) QUESTION TWO (a) Explain THREE metrics that could be used to measure the quality of loans in the mortgage market.
Study Tips & Recommendations
Time Management
Practice under timed conditions to improve speed and accuracy. Allocate specific time limits to each section.
Active Practice
Attempt all questions before checking answers. Review mistakes to understand where improvements are needed.
Mark Scheme Review
Study marking schemes carefully to understand how examiners award points and structure your answers accordingly.
Regular Review
Schedule periodic reviews to reinforce learning and combat forgetting. Use spaced repetition for optimal retention.
Content Preview
CIFA FOUNDATION LEVEL INTRODUCTION TO FINANCE AND INVESTMENTS WEDNESDAY: 20 August 2025. Afternoon Paper. Time Allowed: 3 hours. Answer ALL questions. Marks allocated to each question are shown at the end of the question. Show ALL your workings. Do NOT write anything on this paper. (c) Makina Limited intends to raise finance as follows: op w .ch w • • • • Issue 1,000,000 ordinary shares of Sh.20 each at Sh.30 per share. The floatation costs will be 10% of the market price of the share. Issue 500...
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