Good day students,
If you are using the 10th edition of the Managerial Finance textbook, please ignore the following
sections in preparing for your assessments for 2024. These are new sections which are not in the
9th edition and as you may know the official prescribed textbook for Management Accounting III
(MAC3761) for 2024 is the 9th edition. Therefore, to accommodate students using the 9th edition,
these sections can be ignored – for 2024 only.
Changes in the 10th edition
Chapter Changes to ignore Reference
Chapter 2 2.1. Table 2.1: Steps involved in scenario Section 2.6.4, page 87
(LU 14) planning
2.2. Implementing a strategy Section 2.8.4, page 96
2.3. Choosing the right IT resources Section 2.10.3, page 110
2.4. Implementing the right IT resources
Chapter 3 3.1. Benefits of sound risk management in a Section 3.1.2, page 125
(LU 15) business
3.2. Integrating risk management throughout Section 3.1.3, page 125
the value-creation and strategy
selection
3.3. Risk framework defined Section 3.2.1, page 129
3.4. The COSO framework Section 3.2.2, page 130
3.5. ISO 31000 Section 3.2.3, pages 131 – 133
Ignore from the section that starts with “ISO
31000 describes the risk management
process as –…” (page 131) until “During the
design of reporting systems,
consideration…” (page 133)
3.6. Risk financing Section 3.5.6, page 135
3.7. Risk termination Section 3.5.7, page 136
Chapter 4 4.1. Project-specific cost of capital Section 4.10.2, page 165
(LU 17) 4.2. Advantages of using the WACC Section 4.15, page 174
4.3. Other shortcomings in calculating and Section 4.16, pages 174 – 175
applying it [WACC] include the following:
4.4. Due diligence requirements Section 4.17, page 175
Chapter 5 5.1. Ignore the sentence “The efficient Section 5.1, page 192
(LU 17) frontier is………of securities in a
portfolio” only
5.2. Asset pricing Section 5.7.2, page 212
5.3. Portfolio management Section 5.7.3, page 212
5.4. Valuations Section 5.7.4, page 212
5.5. Performance evaluation Section 5.7.5, page 212
5.6. Ignore “Limited applicability to non- Section 5.7.8, page 217
traded assets” and “Sensitivity to inputs”
– The last two limitations of the use of
CAPM
Chapter Changes to ignore Reference
Chapter 7 7.1. ESG financing Section 7.6.4, pages 307 – 308
(LU 16) 7.2. Impact of section 24J of the Income Section 7.13, pages 314 – 321
Tax Act on the financing decision
7.3. Developing a financing plan and Section 7.18, page 330
strategy
Chapter 8 8.1. Data analytics Section 8.3.3, pages 408 – 409
(LU 21)
Chapter 9 9.1. Causes of poor cash flow Section 9.3.4, point (h), page 438
(LU 18) 9.2. Short-term investments Section 9.3.7, pages 440 – 441
9.3. Market developments Section 9.3.8, page 441
9.4. Cash deficits Section 9.3.9, page 441
Chapter 12 12.1. Due diligence in mergers and Section 12.1.4, pages 609 – 610
(LU 24) acquisitions
12.2. Defences against acquisitions Section 12.1.5, page 611
12.3. A snippet titled “Burger King Section 12.1.7, page 613
saga: Whose side are the regulators
on, anyway”
12.4. Post-acquisition/merge impacts Section 12.4.4, pages 623 – 624
on various shareholders
12.5. How an MBO occurs Section 12.4.5.2, page 625
12.6. Advantages of MBOs Section 12.4.5.3, page 625
12.7. Disadvantages of MBOs Section 12.4.5.4, pages 625 – 626
12.8. Corporate divestments and other Section 12.4.6, pages 626 – 633
forms of corporate transaction
12.9. Other key qualitative Section 12.5, pages 633 – 636
considerations
Chapter 14 14.1. Example: Aveng Ltd Share page 714
(LU 20) consolidation (snippet).
Chapter 15 15.1. Financial strategy and risk Section 15.1, pages 728 – 731
(LU 19) management
15.2. Other risks relating to foreign Section 15.2.6, page 734
currency transactions – Ignore the
last two bullets points, i.e. (i)
Commodity risk and (ii) Political risk
15.3. Over-the-counter (OTC) options Section 15.10.2, page 760
versus traded options – Ignore the
last paragraph of the section, i.e. “A
warrant is issued…are expected to
change”
