CA Inter FM ECO Study Material Notes

CA Inter FM ECO Study Material Notes – Financial Management & Economics for Finance Notes

ICAI CA Inter FM ECO Study Material Notes help individuals in clearing their doubts regarding the questions. Chapter-wise detailed study materials are included in FM ECO CA Inter Study Material Notes. Download CA Inter Financial Management and Economics for Finance Notes PDF for free and prepare easily.

You can find the questions and answers in CA Intermediate FM ECO Practice Manual. Obtain the answers to the questions from CA Inter ECO FM Study Material and prepare to score the best marks.

CA Intermediate Financial Management and Economics for Finance Study Material Notes

CA Intermediate Financial Management and Economics for Finance Study Material Notes have Chapter Wise Important Questions and Answers. You can use the CA Inter FM and ECO Study Material as a quick check for the topics and it even saves you time in searching for the answers. Here the answers are provided in a simple manner that every student can understand. Just go through the quick links and download the respective CA Inter Financial Management & Economics for Finance Study Material Notes PDF easily.

CA Inter FM Study Material

Here provided are the chapter-wise links for CA Intermediate Financial Management FM Study Material. Jump to the sections and download the study material notes.

CA Inter Economics Study Material

These 4 are the direct links to download CA Inter ECO Study Material. Avail the topic wise study material and improve your preparation.

CA Inter FM Notes

CA Inter Financial Management Notes includes the chapter-wise topics. It has complete data about the important concepts. These CA Intermediate FM Notes are helpful during the revision.

CA Inter ECO Notes

The 4 different concepts under CA Intermediate ECONotes are Public Finance, Determination of National Income, Money Market, and International Trade. Candidates can know every topic study notes separately by hitting the respective link.

CA Inter FM ECO Question Papers

ICAI CA Inter Financial Management and ECO Previous Question Papers are here. After preparing all the concepts, test your knowledge by solving the previous question papers. By looking at the question papers, you may also know the important questions.

CA Inter FM ECO Study Material Notes

CA Inter FM ECO Chapter Wise Weightage

CA Intermediate FM ECO Weightage has the names of the different chapters and their weightage in different question papers. With the CA Inter ECO FM Chapter wise Weightage, you can know how many marks can be expected from every topic of the syllabus. Therefore, download the CA Inter FM ECO marking scheme and prepare well.

Financial Management CA Inter Weightage

CA Inter Economics for Finance Weightage

CA Inter Financial Management & Economics for Finance Syllabus

New CA Inter FM ECO Syllabus is provided here. Section A has a syllabus for financial management and section B has a syllabus of economics for finance. Go through the detailed CA Inter Financial Management and Economics for Finance Paper 8 Syllabus to know the topics. Try to prepare all the concepts without fail.

Paper 8: Financial Management and Economics for Finance
(One Paper – Three hours – 100 Marks)

Section A: Financial Management (Marks: 60)

To develop an understanding of various aspects of Financial Management and acquire the ability to apply such knowledge in decision-making.

1. Financial Management and Financial Analysis
(i) Introduction to Financial Management Function
(a) Objective and scope of financial management (b) Role and purpose (c) Financial management environment (d) Functions of finance executives in an organization (e) Financial distress and insolvency.

(ii) Financial Analysis through Ratios
(a) Users of the financial analysis (b) Sources of financial data for analysis
(c) Calculation and Interpretation of ratios
Analysing liquidity, Analysing leverage, Analysing solvency, Analysing efficiency/activity, Analysing profitability
(d) Limitations of ratio analysis

2. Financing Decisions
(i) Sources of Finance
(a) Different Sources of Finance, Characteristics of different types of long-term debt and equity finance, Methods of raising long-term finance (b) Different Sources of short-term finance (c) Internal fund as a source of finance (d) International sources of finance (e) Other sources of finance- Lease Financing, Sale and leaseback, Convertible debt, Venture capital, Grants, etc.

(ii) Cost of Capital
(a) Significance of cost of capital (b) Factors of cost of capital (c) Measurement of costs of individual components of capital (d) Weighted average cost of capital (WACC) (e) Marginal cost of capital (f) Effective Interest rate.

(iii) Capital Structure Decisions
(a) Significance of capital structure (b) Determinants of capital structure (c) Capital structure planning and designing (d) Designing of optimum capital structure (e) Theories of Capital Structure and value of the firm-relevancy and Irrelevancy of capital structure (f) EBIT – EPS Analysis, Breakeven – EBIT Analysis (g) Under/Over Capitalisation.

(iv) Leverages
(a) Types of Leverages – Operating, Financial, and Combined (b) Analysis of leverages.

3. Capital Investment and Dividend Decisions
(i) Capital Investment Decisions
(a) Objective of capital investment decisions
(b) Methods of Investment appraisal:
Payback period, Discounted payback period, Accounting Rate of Return (ARR), Net Present Value (NPV) – The meaning of NPV, Strengths, and limitations of NPV method, The working capital adjustment in an NPV analysis, Capital rationing, Equivalent Annual Costs, Internal Rate of return (IRR) – Limitations of the IRR method, Multiple IRRs, Modified Internal Rate of Return (MIRR)- Definition and explanation of MIRR, The process for calculating MIRR, and Strengths of the MIRR approach, Profitability Index.

(ii) Adjustment of Risk and Uncertainty in Capital Budgeting Decision
(a) Probability Analysis (b) Certainty Equivalent Method (c) Risk-Adjusted Discount Rate (d) Scenario Analysis (e) Sensitivity Analysis.

(iii) Dividend Decisions
(a) Basics of Dividends (b) Forms of dividend (c) Determinants of dividend (d) Relevancy and Irrelevancy of Dividend Policies – Traditional Approach, Walter’s model, Gordon’s model, Modigliani, and Miller (MM) Hypothesis.

4. Management of Working Capital
(i) Management of Working Capital
(a) The management of working capital- Liquidity and Profitability (b) The Working capital financing decisions – Primary and Secondary Sources of Liquidity (c) The working Capital Cycle (operating Cycle), Effectiveness of Working Capital based on its operating and cash conversion cycles (d) Assessment of working capital requirement (e) Management of Accounts Receivables (Debtors) (f) Factoring and Forfaiting (g) Management of Accounts Payables (Creditors) (h) Management of Inventory (i) Management of Cash, Treasury management (j) Banking norms of working capital finance.

Section B: Economics for Finance (Marks: 40)

To develop an understanding of the concepts and theories of Economics in the context of Finance and acquire the ability to address application-oriented issues.

1. Determination of National Income
(i) Macro Economic Aggregates and Measurement of National Income (ii) The Keynesian Theory of Determination of National Income

2. Public Finance
(i) Fiscal functions: An Overview (ii) Market Failure (iii) Government Interventions to Correct Market Failure (iv) Fiscal Policy.

3. The Money Market
(i) The Concept of Money Demand: Important Theories of Demand for Money (ii) The Concept of Money Supply (iii) Monetary Policy.

4. International Trade
(i) Theories of International Trade (ii) Trade Policy – The Instruments of Trade Policy (iii) Trade Negotiations (iv) Exchange Rates and their economic effects (v) International Capital Movements: Foreign Direct Investment.

Download CA Inter Study Material PDF for free of cost by tapping on the link. The study material has important questions along with the answers.

Features of CA Inter Financial Management & ECO Study Material Notes

Check out the highlights of CA Intermediate ECO FM Study Material Notes from the following sections.

  • CA Inter FM ECO Study Material Notes act as a great supplement at the time of preparation.
  • Improve your skills and test knowledge of the concepts by giving answers to the questions in the review tests.
  • CA Inter FM ECO Notes can be used as a quick check to assess your preparation levels.
  • Our subject experts have designed these Cs Intermediate FM ECO Study Material Notes as per the latest syllabus guidelines.
  • Solving all the questions in the previous papers will improve your overall proficiency levels and help to crack the exam.

FAQs on CA Inter FM ECO Study Material Notes

1. Is FM ECO a scoring subject?

Yes, FM ECO is a scoring subject in the CA Inter program. If you prepare well, then you can score 100 marks easily.

2. What is FM ECO in CA Inter?

Financial Management & Economics for Finance is the 8th paper in the CA Intermediate course.

3. Is study material enough for CA Inter?

Yes, the study material is enough for the CA Inter FM ECO paper.

Final Verdict

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