Last month I looked at the best way to tackle a case study, but case study is only one type of exam, what about the more traditional style of exam question?
The world is full of great advice, lose weight, exercise more, stop smoking, just answer the question ….all these statements are very clear with regard to WHAT you should do but terribly unhelpful as HOW to do it.
The reason that students fail exams is simple, every examiner since the beginning of time will have made some of these comments.
Students fail exams because?
- They don’t know the subject – inexcusable and the only reason you should fail
- They don’t read the questions properly – and as a result misunderstand what was being asked
- They don’t manage their time – so only complete 50% of the paper
- They don’t write good answers – true this might be due to lack of knowledge but could also be the result of not knowing how much to write
The last three of these can be overcome with the use of good exam techniques. In this blog I want to share with you two simple techniques that I think will help.
How to read questions properly – Tip one, the rule of AND
Below is an exam question worth 12 marks. You don’t need to know anything about the subject so don’t worry.
Using the information given for DT Co, calculate the adjusted present value of the investment and the adjusted discount rate, and explain the circumstances in which this adjusted discount rate may be used to evaluate future investments. (12 marks)
The rule of AND is simple, where there is an AND in the question simply put a line through the AND then make the next statement the start of a new question.
Now read the question
1. Using the information given for DT Co, calculate the adjusted present value of the investment. and
2. (calculate) The adjusted discount rate, and
3. Explain the circumstances in which this adjusted discount rate may be used to evaluate future investments.
There are now three questions and because we have broken it up, it is so much clearer what you have to do. If we were really clever we might be able to guess how many marks out of 12 relate to those three questions, a tip for another day perhaps.
Define Explain and Illustrate is a technique to help you write more using a simple structure.
Read this question
Discuss the proposal to repurchase some of the company’s shares in the coming year using the forecast surplus cash. Other implications of share repurchase for the company’s financial strategy should also be considered. (10 marks)
Firstly Define the technical words. In this example the technical word is repurchase, so firstly we need to say what a share repurchase is.
E.g. a share repurchase is where a company buys back its own shares and as a result reduces the number of shares available on the market.
Secondly Explain in more detail.
E.g. the share buy back has to be financed in some way so one implication is that it will result in a reduction in the company’s cash balance. It also means that because there are fewer shares, earnings per share (eps) will increase.
And lastly and in many questions most importantly, Illustrate. This could be by way of a diagram an example or by referencing to the question in more detail. The reason this is so important is that this is how you will demonstrate to the examiner that you can apply the knowledge. If you don’t understand something you will not be able to apply it. The application section of the answer will often carry the most marks.
E.g. in the example above it is clear that the company is forecasting surplus cash, i.e. they have more money in the future than they need. Leaving this money in the bank is not considered sensible partly because the level of return that can be earned from the bank will be less than the shareholders require, it can also be interpreted as a lack of ambition on the part of the Directors. Blah blah blah
Depending on the detail provided in the question this final illustration section can go on and on. How much you write will depend on the marks available.
I hope you have found these two tips helpful, if you want more in the coming months just add a comment to this blog and I will oblige.
Epic exam failure – what not to put on your exam paper
And finally a short video showing students real exam answers – funny