HKICPA QP Module 7 Financial Management case studies
HKICPA QP Module 7 Financial Management · Put your knowledge to work in context.
This page is an independent study resource for candidates preparing for the financial management component of the Hong Kong Institute of Certified Public Accountants (HKICPA) Qualification Programme (QP). The QP is the Institute's professional accountancy education route for people working towards becoming a Hong Kong CPA; the Institute's own navigation lists QP pages covering 'About the QP', 'Pre-entry education', 'Professional accountancy education', 'Revised Practical Experience Framework', 'Application and registration', 'Timetable', 'Fee schedule', 'Programme accreditation', 'Position Paper', 'QP graduate', 'Complaints against registered students', 'FAQ' and 'Enquiries', and separately 'The Capstone', 'QP Student support and benefits' and 'QP Examination Support'. The HKICPA QP Module 7 Financial Management case studies are 5 cases and about 5,467 words.
1Harbour Jade Holdings: whose company is it anyway?
Harbour Jade Holdings (HJH) is a Hong Kong-listed retailer. The founding Cheung family owns 61%, the free float is 26% and a strategic investor holds the rest.
1,058 words, about 5 min2Golden Harbour Terminals: allocating HK$100 million under a hard capital cap
Golden Harbour Terminals operates a container yard in Tsing Yi. The capital expenditure committee has HK$100 million of approved funding for the coming year and four indivisible projects, all evaluated at the company-wide WACC of 8%: Project Cost (HK m) NPV at 8% (HK m) IRR --- --- --- --- A - automated gate system 45.0 9.0 14.2% B - second berth crane fleet 80.0 13.0 12.8% C - rooftop solar plus battery 50.0 9.9 13.9% D - yard resurfacing 20.0 3.4 13.1% Project C earns a 15-year, government-backed Feed-in Tariff; project B's throughput is tied to the highly cyclical transpacific trade.
1,089 words, about 5 min3Pearl River Properties: a HK$600 million acquisition against a 3.5x covenant
Pearl River Properties (PRP) is a Hong Kong-listed industrial landlord. Net debt is HK 1,560 million and trailing EBITDA is HK 480 million; the term loan covenant is net debt/EBITDA of 3.50x, tested半annually.
1,099 words, about 5 min4Silverline Logistics: a divisional hurdle rate for a new cold-chain venture
Silverline Logistics Ltd runs port drayage and warehousing in Hong Kong, financed 15% debt / 85% equity, with an equity beta of 0.95. The 10-year Hong Kong Government Bond yields 3.8%, the market risk premium is estimated at 5.5%, Silverline's pre-tax cost of debt is 4.9% and the profits tax rate is 16.5%.
1,095 words, about 5 min5Cheung Sha Precision Components: the 143-day cash cycle and a yen payable
Cheung Sha Precision Components Ltd makes machined parts in Tsuen Wan. Revenue is HK 240 million, cost of goods sold is 70% of revenue, receivables are 78 days (terms are 45), inventory is 95 days and payables are 30 days.
1,126 words, about 6 min