CISI SFCIV Level 4 Exam Guide: Syllabus and Study Plan

Table of Contents

• • Where SFCIV fits in the Diploma route
• • CISI SFCIV exam format
• • Seven syllabus elements and current weightings
• • What makes the Level 4 unit demanding
• • A practical 70-hour SFCIV study plan
• • Build one calculation framework
• • Use the latest syllabus for your sitting
• • Final takeaway

The CISI SFCIV Level 4 exam is the Sources of Finance, Capital Investments and Valuations unit in the current Diploma in Corporate Finance route. It tests how companies raise capital, assess investments, determine required returns, value businesses and manage interest-rate and currency risk.

Quick answer: the exam contains 40 multiple-choice questions in 60 minutes. Debt Capital Market and Company Valuation are the joint-largest elements with eight questions each, followed by Cost of Capital and Capital Budgeting with seven each.

Where SFCIV fits in the Diploma route

SFCIV is the second on-demand unit in the revised route:

1. Level 3 Financial Reporting and Financial Statements Analysis
2. Level 4 Sources of Finance, Capital Investments and Valuations
3. Level 6 Mergers and Acquisitions and Market Regulations
4. Level 6 Corporate Finance Strategy and Advice

That position explains the syllabus design. FRFS provides the reporting foundation; SFCIV applies financial information to funding, investment and valuation decisions; the later Level 6 units move into transactions, regulation and strategic advice.

CISI SFCIV exam format

Feature	Current detail
Level	CISI Level 4
Assessment	Computer-based multiple-choice examination
Scored questions	40
Standard duration	60 minutes
Syllabus elements	Seven
Approximate workbook study time	70 hours

The standard pace is 90 seconds per scored question. Computer-based sittings may include up to 10% additional, unidentified trial questions that do not contribute to the result; proportionately more time is provided when they appear.

Seven syllabus elements and current weightings

Element	Questions	Share
Equity Capital Market	6	15%
Debt Capital Market	8	20%
Alternative Sources of Finance	2	5%
The Cost of Capital	7	17.5%
Capital Budgeting	7	17.5%
Company Valuation	8	20%
Derivatives and Risk Management	2	5%

Version 2, effective from 11 May 2026, moved one question from Cost of Capital to Alternative Sources of Finance compared with Version 1. This is a small change with a practical consequence: candidates using older notes can misallocate revision time.

What makes the Level 4 unit demanding

The syllabus is broad, but its main challenge is integration. Bond yields affect debt cost. Debt and equity costs feed WACC. WACC can become a discount rate when its risk assumptions fit the project. Discounted project or company cash flows produce values that must then be reconciled between enterprise and equity holders.

Calculations therefore need interpretation. A correct NPV is not enough if the discount rate is inappropriate. In a company valuation, bridge enterprise value to equity value by deducting net debt and adjusting for relevant non-operating claims or assets, then use the appropriate diluted share count for a per-share figure. A valuation multiple is not enough without a consistent earnings definition and comparable company.

A practical 70-hour SFCIV study plan

Workstream	Hours
Equity Capital Market	8
Debt Capital Market	12
Alternative Sources of Finance	4
Cost of Capital	10
Capital Budgeting	10
Company Valuation	12
Derivatives and Risk Management	4
Mixed calculations, scenarios and timed review	10
Total	70

The plan broadly respects the weightings while protecting ten hours for integration and timing. If bond mathematics, beta ungearing/regearing or cash-flow valuation is new, move hours from stronger conceptual sections into those calculations.

Build one calculation framework

For each numerical method, record:

• the purpose of the calculation;
• the exact inputs and where they come from;
• the assumptions that make the method appropriate;
• the interpretation of the result;
• the limitation that could change the decision.

This works for yield, duration, CAPM, WACC, NPV, IRR, valuation multiples and discounted cash flow. It also helps distinguish formulas that look similar but answer different questions.

Use the latest syllabus for your sitting

This guide was reviewed against the latest official syllabus available in 2026. Always check the official Version 2 SFCIV syllabus, the Diploma in Corporate Finance page and the Candidate Update page for your examination date.

The CISI SFCIV preparation page now includes five timed 40-question mocks, seven chapter summaries, 148 flashcards, 108 searchable revision references and a source-grounded AI tutor.

Final takeaway

SFCIV is manageable when you study it as a single corporate-finance decision chain: choose a funding source, determine the required return, appraise the investment, value the company and manage the resulting financial risks. Use Version 2 weightings, practise calculations under time pressure and explain why each method fits the facts.