FM Textbook Syllabus
Chapter 1
Syllabus A. Financial Management Function
A1. The nature and purpose of financial management
All subject exam questionsA2. Financial objectives and corporate strategy
All subject exam questionsA3. Stakeholders and impact on corporate objectives
- Total Shareholder Return1:40
- Stakeholders interests2:44
- Corporate Governance & Stakeholders2:43
- SMEs and stakeholder interests
- Myopic Management
A4. Financial and other objectives in NFP organisations
All subject exam questionsChapter 2
Syllabus B. Financial Management Environment
B1. The economic environment for business
- Economic environment intro2:43
- Fiscal Policy0:52
- Monetary Policy0:59
- Exchange Rate Policy0:45
- More policies2:41
- Treasury Function1:18
B2. The nature and role of financial markets and institutions
- Financial Markets
- The Role of Financial Intermediaries
- Functions of Stock and Bond markets
- Risk and Return of different securities
- Fintech1:07
B3. The nature and role of money market
- The role of money and capital markets
- The role of banks in the operation of the money markets
- Convertible Debt6:56
- The characteristics and role of the principal money market instruments
Chapter 3
Syllabus C. Working Capital Management
C1. The nature, elements and importance of working capital
All subject exam questionsC2b. Accounting ratios
- Ratios and Strategy
- Current ratio0:40
- acid test0:47
- Inventory days0:29
- Receivables Days1:09
- Payable days0:50
- Sales to Working Capital
C2c. Management of inventories
All subject exam questionsC2d. Management of receivables
- Managing Receivables in Practice2:05
- Early Settlement Discounts4:32
- Debt Factor6:31
- Invoice Discounting1:37
- Managing Foreign Receivables
C2f. Managing Cash
All subject exam questionsC3. Working Capital Funding
- Investment in current assets2:02
- Permanent & Fluctuating Current Assets2:35
- WC investment v Funding
- WC Funding Policies1:54
- Calculating the cost of WC funding2:16
Chapter 4
Syllabus D. Investment Appraisal
D1. Investment appraisal techniques
- Relevant Costs
- Investment appraisal process0:29
- Payback method3:00
- Accounting Rate of Return13:11
- NPV2:39
- NPV Theory
- Internal Rate of Return2:57
- NPV v IRR4:51
D2. Allowing for inflation and taxation in DCF
All subject exam questionsD3. Adjusting for risk and uncertainty in investment appraisal
- Risk & Uncertainty basics0:42
- Sensitivity Analysis
- Probability analysis2:04
- Simulation
- Adjusted Payback3:05
D4. Specific Investment Decisions
- Lease or Buy4:54
- Asset Replacement Decision4:44
- Capital rationing - Single period- Types4:32
- Capital rationing & divisible projects4:32
- Capital rationing & INdivisible projects4:32
Chapter 5
Syllabus E. Business Finance
E1a. Short-term sources of finance
E1d. Islamic Financing
- Islamic Finance - Introduction0:51
- Ijara (leasing) and Murabaha (credit)0:53
- Mudaraba (equity), Sukuk (debt) & Musharaka (JV)1:54
E2ae. Estimating the cost of capital
- Cost of Capital - Basics1:45
- Calculating the WACC9:24
- Dividend Valuation Model7:23
- Gordon's growth
- capm3:13
- capm continued
- DVM or CAPM?3:09
E2b. Cost of Debt
All subject exam questionsE3. Sources of finance and their relative costs
- Debt or Equity?3:26
- Gearing considerations1:48
- The impact of sources of finance on financial position
- Impact of cost of capital on investments
- Types of Risk
- Ungearing & Regearing4:00
E4. Capital structure theories and practical considerations
All subject exam questionsE5. Finance for small and medium sized entities (SMEs)
Chapter 6
Syllabus F. Business Valuations
F1. Nature and purpose of the valuation of business
All subject exam questionsF3. The valuation of debt and other financial assets
F4. Efficient Market Hypothesis (EMH)
- Efficient Market Hypothesis (EMH)2:20
- Market Capitalisation2:01
- Considerations in the valuation of shares and businesses
- Significance of investor speculation
Chapter 7
Syllabus G. Risk Management
G1. The nature and types of risk
All subject exam questionsG2. Causes of exchange rate diff. and interest rate fluctuations
- Understanding Exchange Rates3:41
- Predicting Exchange Rates5:47
- Learn by doing - Foreign exchange basics
- Interest Rate Risk14:17
G3. Hedging techniques for foreign currency risk
- Forward Rates3:14
- Money Market Hedges - payment9:23
- Money Market Hedge - Receipt6:13
- Currency Futures2:43
- Currency Options
- Currency Swaps1:05