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SHOULD I GO ON THE COMPREHENSIVE
OR ACCELERATED COURSE?
COMPREHENSIVE COURSE
Our comprehensive course is designed to cover the majority of the syllabus in 5 days
(10 evenings). We will teach each subject area from the bottom up, assuming no
prior knowledge. The course pace is relatively fast as there is a lot to fit in, so some
people do find it useful to have read some of the study book before coming on the
course. There will be some time for question practice during the course but our focus
is on understanding the core content.
ACCELERATED COURSE
The 3 day accelerated course covers slightly less of the syllabus, leaving a few more
areas for home study. But the main differences are that the pace is faster and we will
assume a certain degree of familiarity with financial concepts.
If you are in any of the following categories you may find the accelerated course fits
your needs better:
•
You are a recent graduate in finance, accounting or a similar subject
•
You have a Masters degree in Finance or investment
•
You have five or more years of industry experience and are familiar with the
terminology and theory
•
You have a professional accounting qualification (ACCA, CIMA, ICAEW or
equivalent)
•
You have sat the CISI Certificates in Securities and derivatives or CISI Level
4 IAD papers in securities, derivatives and IR&T
•
You have already studied towards the IMC and would prefer a faster course
rather than being taught from the basics.
If you are still unsure, we have put together this small test to help you judge which
course you should attend. For any calculational question, please ensure you can
work out the answer on the IMC exam calculator – the Casio FX83 GT PLUS.
IMC ACCELERATED COURSE TEST
1. What is the geometric mean of the following 4 values: 5, 7, 10, 15
2. How does a median differ from the mode when looking at a set of data?
3. If £2000 is invested in an account earning 5% compound interest for 6 years,
what is in the account at the end of this period?
4. If you need to have £10000 in 5 years time, and you can invest at a fixed
annual rate of 3% for this period, how much should you invest now?
5. If an investment opportunity has a positive NPV of £1m, what conclusion
could you draw?
6. If a share is expected to pay a dividend of £1.50 at the end of each year from
this year onwards for the foreseeable future, what would you expect the share
price to be if shareholders require a 10% return?
7. Where would you expect to find accounts receivables, inventories and PPE in
a set of accounts?
8. If a company charges depreciation, where does this impact the financial
statements?
9. Can you name two factors which will reduce the value of a bond?
10. What economic tools are available to boost demand in the economy?
ANSWERS AND RECOMMENDATION
If you score 7 or more you could attend the accelerated course. If you got them all
right, you could go straight to our 1 day revision course!
IMC accelerated course test
1. What is the geometric mean of the following 4 values: 5, 7, 10, 15
To calculate a geometric mean, multiply the 4 values then take the 4th root.
Geometric mean = ∜(5×7×10×15) = 8.51
2. How does a median differ from the mode when looking at a set of data?
The median is the middle item in a set of ordered data. The mode is the most
frequently occurring value in a set of data.
3. If £2000 is invested in an account earning 5% compound interest for 6 years,
what is in the account at the end of this period?
This is a basic application of compounding.
FV = 2000 x 1.056 =2680.19
4. If you need to have £10000 in 5 years time, and you can invest at a fixed
annual rate of 3% for this period, how much should you invest now?
This is a basic application of discounting.
PV = 10000 / 1.035= 8626.09
5. If an investment opportunity has a positive NPV of £1m, what conclusion
could you draw?
A positive NPV means that the investment adds value of £1m in todays terms.
Another way of expressing this is to say that it covers the cost of financing
(the discount rate) and generates wealth with a PV of £1m
6. If a share is expected to pay a dividend of £1.50 at the end of each year from
this year onwards for the foreseeable future, what would you expect the share
price to be if shareholders require a 10% return?
We discount the constant perpetuity at a rate of 10% giving a price of
£1.50/0.10 = £15.00
7. Where would you expect to find accounts receivables, inventories and PPE in
a set of accounts?
Accounts receivables and inventory are current assets. PPE (property, plant
and equipment) are in non-current assets.
8. If a company charges depreciation, where does this impact the financial
statements?
The non-current assets will reduce and the depreciation expense will appear
in the income statement, thus reducing profits.
9. Can you two factors which will reduce the value of a bond?
An increase in interest rates (yields) and a deterioration in credit quality of the
bond (credit rating downgrade).
10. What economic tools are available to boost demand in the economy?
Interest rates can be dropped/money supply increased. The government can
run a deficit, by reducing taxes and/or increasing government expenditure.