The course notes and Core Reading for SP5 refer to the CB1 material in a few chapters but often don't elaborate on it. In particular, chapter 7 states: "Students will be expected to be familiar with the relevant material from Subject CB1, in particular, the various relationships within an organisation, agency theory and maximising shareholder wealth." I didn't sit CB1 because my degree exempted me from it. Therefore, I don't have the notes on any of these concepts to refer to. Can anyone be more specific on what material from CB1 we actually need? For example, in the Series X2 assignment, question 2 asks for a discussion on the opportunity cost of capital. This doesn't appear anywhere in the SP5 course notes so could we realistically be asked a question from a topic on a different syllabus? Thanks!
Hi Subject SP5 builds on material covered in earlier subjects such as subjects CB1 and CP1 and so in theory material covered in these earlier subjects could be tested in the Subject SP5 exam. However, in practice, in the past the Subject SP5 examiners have tended not to test this earlier material. One exception is the accounting ratios covered in Subject CT2 / CB1. Application of these has been tested several times in the Subject ST5/SP5 exams I think and so we have summarised the key ratios in the Subject SP5 Course Notes - see the self-assessment question on page 9 of Chapter 11. I would hope that if the examiners did test material from earlier subjects they would be testing broad understanding that you still possess from your earlier studies, rather than very specific details. I hope that helps Gresham
