Corporate Finance

CISI Sources of Finance, Capital Investments and Valuations (UK)

Official CISI Accredited Training Partner

Structured preparation for the Level 4 SFCIV unit in the CISI Diploma in Corporate Finance, covering all seven current syllabus elements.

160 Practice Questions Detailed Study Notes Realistic Mock Exams

Course syllabus information reviewed for 2026. Always check the awarding body’s latest official syllabus and candidate updates before booking or sitting your exam.

Exactly what is included

5 mock exams × 40 questions · 160 unique questions · 200 total question slots · unlimited retakes
Focus Learn · key areas, pitfalls, exam traps & key numbers
Flashcards · fun, fast and effective recall
Exam cheat sheet · key facts, rules and numbers by chapter
Audio Learning · every chapter in audio
AI Analyzer & Mentor · pinpoints your weak areas
Study Mode Exams · learn while you train
AI Chat trained specifically for this exam
Community-polished data, improved every day
Up-to-date, accuracy-checked content

AI Audio Summaries New

Listen to course modules on the go. Perfect for studying while driving or commuting.

🎧 Audio

* This is a chapter sample. All audio is available in the full version.

Prepare for the CISI SFCIV exam

Sources of Finance, Capital Investments and Valuations is the Level 4 second unit in the current route to the CISI Diploma in Corporate Finance. It develops the funding, investment-appraisal, valuation and financial-risk skills required before candidates progress to the Level 6 units.

The learning course follows the latest official syllabus structure reviewed for 2026. It maps the 40-question examination across seven elements: equity capital markets, debt capital markets, alternative sources of finance, cost of capital, capital budgeting, company valuation, and derivatives and risk management. Debt Capital Market and Company Valuation are the joint-largest elements with eight questions each.

The course includes five timed 40-question mocks, seven detailed chapter summaries, 148 flashcards, 108 searchable revision references and a source-grounded AI tutor.

Key Benefits

Funding-market coverage

Compare equity, debt and alternative sources of finance from a corporate-finance perspective.

✓ Equity and debt capital markets
✓ Alternative funding choices
✓ Risk, return and pricing

Investment decision toolkit

Connect cost of capital with capital budgeting and project-risk analysis.

✓ CAPM, cost of debt and WACC
✓ NPV, IRR, MIRR and APV
✓ Real options, sensitivity and simulation

Valuation and risk focus

Prepare for the two largest valuation and debt elements plus the derivatives used to manage financial risk.

✓ Asset, dividend and earnings valuation
✓ Cash-flow, enterprise and equity value
✓ Interest-rate and currency hedging

Syllabus

Module 1: Equity Capital Market (ECM) 15% syllabus weight

🎧 Audio

Equity securities, relative risk and return, depository receipts, public listings, IPOs and further equity transactions.

• Share classes and voting rights
• IPO routes and offer pricing
• Rights issues and pre-emption
• Share repurchases

Module 2: Debt Capital Market (DCM) 20% syllabus weight

Sources and types of debt, bond pricing and returns, and the assessment of interest-rate and credit-related risks.

• Short-term and quoted debt instruments
• Bond prices, yields and total return
• Duration and convexity
• Credit, currency, call and reinvestment risk

Module 3: Alternative Sources of Finance 5% syllabus weight

The features, benefits, limitations and appropriate uses of non-public-market funding sources.

• Private equity, venture and angel finance
• Crowdfunding, private placings and EIS
• Leases, project finance and mezzanine debt
• Family offices and government-backed finance

Module 4: The Cost of Capital 17.5% syllabus weight

Cost of equity and debt, WACC, capital structure, gearing, project-specific discount rates and taxation.

• Dividend growth model and CAPM
• Cost of redeemable and irredeemable debt
• Market-value WACC
• Asset and equity betas and capital structure

Module 5: Capital Budgeting 17.5% syllabus weight

Investment-appraisal methods, real-option theory and the treatment of risk in project decisions.

• Payback, ROCE, NPV, IRR and MIRR
• Adjusted present value
• Real options and Black-Scholes limitations
• Sensitivity, Monte Carlo simulation and ESG

Module 6: Company Valuation 20% syllabus weight

Asset, dividend, earnings and cash-flow approaches and the relationship between enterprise value and equity value.

• Asset and dividend-based valuation
• P/E, EBIT and EBITDA multiples
• Cash-flow valuation and terminal value
• Enterprise value versus equity value

Module 7: Derivatives and Risk Management 5% syllabus weight

Interest-rate and foreign-currency exposures and the use of derivatives to manage them.

• Interest-rate risk
• Foreign-exchange risk
• Forwards and futures
• Options and swaps

Frequently Asked Questions

Sources of Finance, Capital Investments and Valuations is assessed by 40 multiple-choice questions in 60 minutes. Computer-based tests may include up to 10% additional unscored trial questions with proportionately more time.

SFCIV is the Level 4 second unit in the current Diploma route. It follows Level 3 Financial Reporting and Financial Statements Analysis and precedes the Level 6 units.

Debt Capital Market and Company Valuation each contribute eight of the 40 questions, or 20%. Cost of Capital and Capital Budgeting each contribute seven questions, or 17.5%.

It covers equity and debt capital markets, alternative finance, cost of capital, capital budgeting, company valuation, and derivatives and risk management.

The course includes five timed 40-question mock exams, seven detailed chapter summaries, 148 flashcards, 108 searchable revision references and a source-grounded AI tutor.

Yes! Test your knowledge and review detailed explanations with the free CISI Sources of Finance, Capital Investments and Valuations Mock Exam Preview below. It contains 15 exam-style questions from one named syllabus topic; the full course provides complete mock exams and syllabus coverage.

Interactive preview

Free CISI Sources of Finance, Capital Investments and Valuations Practice Questions & Exam Preview

Try 15 CISI Sources of Finance, Capital Investments and Valuations practice questions from Element 2: Debt Capital Market (DCM)

Practice CISI Sources of Finance, Capital Investments and Valuations exam questions with answers and explanations. The full course includes 5 mock exams and complete syllabus coverage.

Exam Preview

Element 2: Debt Capital Market (DCM)

Question 1 of 15

Which statement most accurately describes short-term unquoted debt?

1 / 15

Flashcards

Card 1 of 10Chapter 1

Question

What is the core exam rule for ordinary and preference share rights?

Tap to reveal answer

Focus Learn

Key Examinable Areas5

Share classes, ownership, voting and distribution rights
Holding-period return, expected return, variance and standard deviation
Depository receipts and global registered shares
ESCC, AIM and IPO stages
Offer methods, pricing, greenshoes, rights and repurchases

Common Pitfalls to Avoid4

Exam Traps4

Key Numbers5

Chapter 1: Equity Capital Market (ECM)

Equity finance gives investors a residual ownership interest rather than a contractual repayment claim. Ordinary shareholders normally vote, share in discretionary dividends and receive any surplus only after creditors and preference shareholders on winding up. Preference shares usually rank ahead for dividends and capital but may have restricted voting rights. Cumulative preference shares carry unpaid dividends forward, participating shares may share in additional profits, and redeemable shares can be repaid subject to capital-maintenance rules. Dual-class, deferred, non-voting, callable and puttable features alter control, cash-flow priority and risk, so the legal rights matter more than a class label.

Equity return normally combines dividend income with the change in share price. A for…

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Who Is This For?

✓ Candidates preparing for the CISI Sources of Finance, Capital Investments and Valuations exam

✓ Professionals progressing through the Diploma in Corporate Finance

✓ Corporate-finance practitioners working with funding, investment appraisal and valuation

✓ Candidates who have completed or been exempted from the Level 3 FRFS unit