FM Textbook Syllabus

Purpose of Financial Management

Financial management, financial and management accounting.

Financial objectives and corporate strategy

Total Shareholder Return

Stakeholders interests

Corporate Governance & Stakeholders

SMEs and stakeholder interests

Myopic Management

Not for Profit objectives

Ways to measure NFP objectives

Economic environment intro

Fiscal Policy

Monetary Policy

Exchange Rate Policy

More policies

Treasury Function

Financial Markets

The Role of Financial Intermediaries

Functions of Stock and Bond markets

Risk and Return of different securities

Fintech

The role of money and capital markets

The role of banks in the operation of the money markets

Convertible Debt

The characteristics and role of the principal money market instruments

Working Capital Management

Cash Operating Cycle

Overtrading

Ratios and Strategy

Current ratio

acid test

Inventory days

Receivables Days

Payable days

Sales to Working Capital

Economic Order Quantity

EOQ with Discounts

Buffer Stock

Just-In-Time

Managing Receivables in Practice

Early Settlement Discounts

Debt Factor

Invoice Discounting

Managing Foreign Receivables

Early Settlement Discounts (Creditors)

Cashflow Forecasts

Treasury Management

Baumol Model

Miller-Orr Model

Investment in current assets

Permanent & Fluctuating Current Assets

WC investment v Funding

WC Funding Policies

Calculating the cost of WC funding

Relevant Costs

Investment appraisal process

Payback method

Accounting Rate of Return

NPV

NPV Theory

Internal Rate of Return

NPV v IRR

Inflation basics

Money & Real Rates

Discounting

Annuities & Perpetuities

Risk & Uncertainty basics

Sensitivity Analysis

Probability analysis

Simulation

Adjusted Payback

Lease or Buy

Asset Replacement Decision

Capital rationing - Single period- Types

Capital rationing & divisible projects

Capital rationing & INdivisible projects

Short term finance

Long term finance

Equity as Finance

Islamic Finance - Introduction

Ijara (leasing) and Murabaha (credit)

Mudaraba (equity), Sukuk (debt) & Musharaka (JV)

Retained Earnings & WC

Dividend Theories

Cost of Capital - Basics

Calculating the WACC

Dividend Valuation Model

Gordon's growth

capm

capm continued

DVM or CAPM?

Redeemable debt

Irredeemable, preference shares and Bank loans

WACC - Putting it all Together

Debt or Equity?

Gearing considerations

The impact of sources of finance on financial position

Impact of cost of capital on investments

Types of Risk

Ungearing & Regearing

Capital structure theories

Financing needs of small businesses

Financing SMEs

Measures to ease the financing problems of SMEs

Valuations - Introduction

Asset Based Valuations

Using PE ratio

Earnings Yield

Dividend Valuation

Discounted Cashflows

The valuation of debt

Efficient Market Hypothesis (EMH)

Market Capitalisation

Considerations in the valuation of shares and businesses

Significance of investor speculation

Types of foreign currency risk

Different types of interest rate risk

Understanding Exchange Rates

Predicting Exchange Rates

Learn by doing - Foreign exchange basics

Interest Rate Risk

Forward Rates

Money Market Hedges - payment

Money Market Hedge - Receipt

Currency Futures

Currency Options

Currency Swaps

Market Value of Bonds

Interest Rate - Forwards & Futures

Interest Options and Swaps