Aim
To develop the knowledge and skills expected of a finance manager, in relation to investment, financing, and dividend policy decisions.
Main capabilities
On successful completion of this paper candidates should be able to:
A Discuss the role and purpose of the financial management function
B Assess and discuss the impact of the economic environment on financial management
C Discuss and apply working capital management techniques
D Carry out effective investment appraisal
E Identify and evaluate alternative sources of business finance
F Discuss and apply principles of business and asset valuations
G Explain and apply risk management techniques in business.
| 1 |
The nature and purpose of financial management
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| 2 |
Financial objectives and the relationship with corporate strategy
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| 3 |
Stakeholders and impact on corporate objectives
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| 4 |
Financial and other objectives in not-for-profit organisations
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| 5 |
The economic environment for business
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| 6 |
The nature and role of financial markets and institutions
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| 7 |
The nature and role of money market
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| 8 |
The nature, elements and importance of working capital
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| 9 |
Management of inventories, accounts receivable, accounts payable and cash
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| 10 |
Determining working capital needs and funding strategies
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| 11 |
Investment appraisal techniques
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| 12 |
Allowing for inflation and taxation in DCF
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| 13 |
Adjusting for risk and uncertainty in investment appraisal
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| 14 |
Specific investment decisions (Lease or buy; asset replacement; capital rationing)
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| 15 |
Sources of and raising business finance
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| 16 |
Estimating the cost of capital
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| 17 |
Sources of finance and their relative costs
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| 18 |
Capital structure theories and practical considerations
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| 19 |
Finance for small and medium sized entities (SMEs)
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| 20 |
Nature and purpose of the valuation of business and financial assets
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| 21 |
Models for the valuation of shares
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| 22 |
The valuation of debt and other financial assets
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| 23 |
Efficient Market Hypothesis (EMH) and practical considerations in the valuation of shares
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| 24 |
The nature and types of risk and approaches to risk management
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| 25 |
Causes of exchange rate differences and interest rate fluctuations
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| 26 |
Hedging techniques for foreign currency risk
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| 27 |
Hedging techniques for interest rate risk
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