Introduction

Introduction

Chapter 1 Financial management and financial objectives

1 The nature and purpose of financial management

2 Financial objectives and the relationship with corporate strategy

3 Stakeholders

4 Measuring the achievement of corporate objectives

5 Encouraging the achievement of stakeholder objectives

6 Not-for-profit organisations

Quick Quiz 1

Chapter 2 The economic environment for business

Syllabus Overview

1 Outline of macroeconomic policy

2 Fiscal policy

3 Monetary and interest rate policy

4 Exchange rates

5 Competition policy

6 Government assistance for business & 7 Green policies & 8 Corporate governance regulation

Quick Quiz 2

Chapter 3 Financial markets and institutions

1 Financial intermediaries & 2 Money markets and capital markets

3 International money and capital markets & 4 Rates of interest and rates of return

5 Money market instruments

Quick Quiz 3

Chapter 4 Working Capital

1 The nature of working capital & 2 Objectives of working capital & 3 Role of working capital management

4 The cash operating cycle

5 Liquidity ratios

Quick Quiz 4

Chapter 5 Managing working capital

1 Managing inventories

2 Managing account receivable

3 Managing account payable

Quick Quiz 5

Chapter 6 Working capital finance

1 The management of cash

2 Cash flow forecasts

3 Treasury management

4 Cash management models

5 Investing surplus cash

6 Working capital funding strategies

Quick Quiz 6

Chapter 7 Investment decision

1 Investment and the capital budgeting process

2 Relevant cash flows

3 Payback period

4 Return on capital employed

Quick Quiz 7

Chapter 8 Investment appraisal using DCF methods

1 Discounted cash flow

2 The net present value method

3 The internal rate of return method & 4 NPV and IRR compared

5 Assessment of DCF methods of project appraisal

Quick Quiz 8

Chapter 9 Allowing for inflation and taxation

1 Allowing for inflation

2 Allowing for taxation & 3 NPV layout

Quick Quiz 9

Chapter 10 Project appraisal and risk

1 Risk and uncertainty

2 Sensitivity analysis

3 Probability analysis

4 Other risk adjustment techniques

Quick Quiz 10

Chapter 11 Specific investment decisions

1 Lease or buy decisions

2 Asset replacement decisions

3 Capital rationing

Quick Quiz 11

Chapter 12 Sources of finance

1 Short-term sources of finance

2 Debt finance

3 Venture capital

4 Equity finance

Quick Quiz 12

Chapter 13 Dividend policy

1 Internal sources of finance & 2 Dividend policy

2 Dividend policy

Quick Quiz 13

Chapter 14 Gearing and capital structure

1 Gearing

2 Effect on shareholder wealth & 3 Finance for small and medium-sized entities

Quick Quiz 14

Chapter 15 The cost of capital

1 Cost of capital

2 Dividend growth model

3 Capital asset pricing model (CAPM)

4 Cost of debt

5 Weighted average cost of capital (WACC)

Quick Quiz 15

Chapter 16 Capital structure

1 Capital structure theories

2 Impact of cost of capital on investments

Quick Quiz 16

Chapter 17 Business valuations

1 The nature and purpose of business valuations & 2 Asset valuation bases

3 Income-based valuation bases

4 Cash flow based valuation models & 5 Valuation of debt

Quick Quiz 17

Chapter 18 Market efficiency

1 The efficient market hypothesis

2 The valuation of shares

Quick Quiz 18

Chapter 19 Foreign currency risk

1 Exchange rates & 2 Foreign currency risk

3 The causes of exchange rate fluctuations

4 Foreign currency risk management

5 Foreign currency derivatives

Quick Quiz 19

Chapter 20 Interest rate risk

1 Interest rates & 2 Interest rate risk

3 The causes of interest rate fluctuations & 4 Interest rate risk management

5 Interest rate derivatives

Quick Quiz 20