CA Intermediate - Paper 8 : Financial Management & Economics for Finance
ICAI has introduced this paper Financial Management & Economics for Finance at the CA Intermediate level where in Financial Management, you are taught Types of Financing, Ratio analysis, Cost of capital, Capital Structure, Decision making in – Financing, leasing, Dividend, Risk Analysis in capital budgeting and Management of working capital. In Economics for Finance you are taught Determination of National Income, The Money markets, Public Finance and International trade.
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More about Financial Management & Economics for Finance
What is Financial Management & Economics for Finance?
Finance is the life blood of business and economics is a study of commercial activities and transactions
Financial management focuses on the use of financial management techniques in decision making
Economics for finance is a specific area that provides understanding of relevant Macro-economic concepts/principles in current Indian / International economy
Why has ICAI introduced this paper, Financial Management & Economics for Finance, at CA Intermediate Level?
Being a CA professional, it is important to understand how various decisions are taken such as source of finance, capital budgeting tactics etc. Also, if you are providing consultancy or other services such auditing, taxation etc, knowing its impact on overall functioning of finance in the business would add great value to clients’ organisation
Financial management in intermediate is a strong base for CA Final Strategic Financial Management
Economics for Finance helps in realising the business space in a broader view
What are the topics covered in at Financial Management & Economics for Finance CA Intermediate Level?
Financial Management & Economics for Finance is one paper which is divided into two parts namely 1) Financial Management – 60 Marks and 2) Economics for Finance – 40 Marks
Types of Financing, Ratio analysis,
Cost of capital, Capital Structure
Decision making in – Financing, leasing, Dividend
Risk Analysis in capital budgeting
Management of working capital
Economics for Finance
Determination of National Income
The Money markets
What is the best approach to study Financial Management & Economics for Finance?
Solve (Write and Practice) as many as problems and at the same time do not ignore THEORY in Financial Management
Make your own notes for theory and economics
Be very clear in concepts so that it enables you to solve any kind of questions easily
Write all Formulae in a pocket note book which helps you to have quick recap of entire syllabus at one place
Be clear when quoting factual data in case of Economics for finance, make sure the data is updated. Do not mention these in the exam if you are not sure
See how CA Vageesh Hegde , Prof. Venkitakrishnan Hariharan and CA Kameshwaran S teach this paper Financial Management & Economics for Finance
To empower every student aspiring to be a CA, CS or CMA to master all subjects in their curriculum and pass their exams at the first attempt with an easy to use tool which they can use to study anytime anywhere