CA Inter Chapter wise Weightage Paper-8 FM and Economics for Finance May 2023

Chapter wise Weightage Paper-8. Section wise weightage of marks for CA Inter Paper 8 FM and Eco Finance for Nov 2022.

CA Inter Paper-8 Chapter-wise weightage: 8th subject chapter-wise marks weightage for CA Intermediate May 2023. Distribution of Marks for CA Intermediate Paper-8 Financial Management & Economics for Finance. ICAI published skill-wise and section wise weightage for FM and EF paper of CA Intermediate course.

The Board of Studies (BoS) of the Institute of Chartered Accountant of India (ICAI) has assigned weightage of marks to various sections of FM & EF subject. You may plan your preparation for the coming CA Inter Nov 2022 exams in a structured manner.

Each subject has been divided into various section-wise topics. Weightage range has been assigned to these sections. The question paper-8 would take into consideration the weightage range assigned to different sections.

Following are the detail section wise weightage of marks assigned to the Paper-8 Financial Management and Economics for Finance of CA Intermediate course examination to be held in November 2022 under New Scheme of Education and Training.

CA Intermediate Paper-8 Chapter-wise Weightage

Following table show you the weightage of marks for each chapter in Financial Management (FM) & Economics for Finance (EF) for the coming November 2022 exams:

Chapter NameWeightage of Marks
Section-A: Financial Management
Chapter-1: Scope and Objectives of Financial Management4 Marks
Chapter-2: Types of Financing5-8 Marks
Chapter-3: Financial Analysis and Planning – Ratio Analysis4-6 Marks
Chapter-4: Cost of Capital5-10 Marks
Chapter-5: Financing Decisions – Capital Structure4-12 Marks
Chapter-6: Financing Decisions – Leverages4-8 Marks
Chapter 7: Investment Decisions6-12 Marks
Chapter-8: Risk Analysis in Capital Budgeting 4-10 Marks
Chapter-9: Dividend Decisions5-10 Marks
Chapter-10: Management of Working Capital

Unit-I: Introduction to Working Capital Management
Unit-II: Treasury and Cash Management
Unit-III: Management of Inventory
Unit-IV: Management of Receivables
Unit-V: Management of Payables (Creditors)
Unit-VI: Financing of Working Capital
4-8 Marks
Section-B: Economics for Finance
Chapter-1: Determination of National Income

Unit-I: National Income Accounting
Unit-II: The Keynesian Theory of Determination of National Income
8-12 Marks
Chapter 2: Public Finance

Unit-I: Fiscal Functions: An Overview
Unit-II: Market Failure
Unit-III: Government Interventions to Correct Market Failure
Unit-IV: Fiscal Policy
5-10 Marks
Chapter 3: Money Market

Unit-I: The Concept of Money Demand : Important Theories
Unit-II: The Concept of Money Supply
Unit-III: Monetary Policy
4-8 Marks
Chapter 4: International Trade

Unit-I: Theories of International Trade
Unit-II: The Instruments of Trade Policy
Unit-III: Trade Negotiations
Unit-IV: Exchange Rate and Its Economic Effects
Unit-V: International Capital Movements
5-15 Marks
Chapter-wise weightage of Marks

Section wise Weightage of Marks for Paper 8

Following are the detail chapter wise weightage Paper-8 for CA Inter Nov 2022 and onwards examinations.

Intermediate Course Paper 8A: Financial Management (60 Marks)

Section I (6 Marks to 9 Marks)

  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 leverage
    • – Analysing solvency
    • – Analysing efficiency/ activity
    • – Analysing profitability
  • (d) Limitations of ratio analysis

Section II (24 Marks to 27 Marks)

  1. Financing Decisions

(i) Sources of Finance

  • (a) Different Sources of Finance, Characteristics of different types of long term debt and equity finance, Method 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 – Sale and lease back, Convertible debt, Venture capital, Grants etc.

(ii) Lease Financing

  • (a) Concept and Classification
  • (b) Significance and Limitations of Lease Financing
  • (c) Financial Evaluation of Leasing Decision

(iii) 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

(iv) 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.

(v) Leverages

  • (a) Types of Leverages- Operating, Financial and Combined
  • (b) Analysis of leverages

Section III (18 Marks to 21 Marks)

  1. 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 impact of taxation on the NPV analysis, The impact of Inflation on the NPV analysis, The working capital adjustment in an NPV analysis, Capital rationing, Equivalent Annual Costs, Adjusted present value
    • – 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, 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) Monte Carlo Simulation
  • (e) Decision Tree Analysis
  • (f) Scenario Analysis
  • (g) 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.

Section IV (6 Marks to 9 Marks)

  1. 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 Forfeiting
  • (g) Management of Accounts Payable (Creditors)
  • (h) Management of Inventory
  • (i) Management of Cash, Treasury management
  • (j) Banking norms of working capital finance

Intermediate Course Paper 8B: Economics for Finance (Marks 40)

Section I (8 Marks to 12 Marks)

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

Section II (8 Marks to 12 Marks)

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

Section III (8 Marks to 12 Marks)

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

Section IV (8 Marks to 12 Marks)

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

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