Introduction to FM - FBA

Course Content

Tuition – Week 1

0/13

Introduction to FM

Investment appraisal – ROCE

Investment appraisal – Payback

Investment appraisal – Time value of money

Investment appraisal – Annuity, Perpetuity

Investment appraisal – NPV

Investment appraisal – IRR

Investment appraisal – DPP

Investment appraisal – Inflation

Investment appraisal – Tax

Investment Aprraisal – Working capital

Section C – Melplash Co

Section C – CBS Co

Tuition – Week 2

0/11

Section C – Hawker Co

Asset investment – Replacement decision

Cabreras Co – Replacement decision

Asset investment – Capital Rationing

Crocket Co – Capital rationing

Invesment appraisal – Risk and uncertainty

Investment appraisal – Expected values

Investment appraisal – Sensitivity

Investment appraisal – Simulation

Copper Co – Risk and incertainty

Tuition – Week 3

0/20

Source of finance – Short term

Source of finance – long-term debt finance

Source of finance – long-term equity finance

Source of finance – Islamic finance

Source of finance – SMEs

Dividend policy

Section C – La Forge Co

WACC Introduction

Cost of equity – DVM

Cost of equity – CAPM

Cost of equity – Project specific CAPM

Cost of preference shares

Tax relief concept

Cost of debt – Irredemable

Cost of debt – Redeemable

Cost of debt – Convertible

Cost of debt – bank loan

WACC calculation

Capital structure theories

Section C – Tanza Co

Tuition – Week 4

0/17

Working capital management and objectives

Working capital – Investment policy

Working capital – Overtrading Overcapitalization

Working capital ratios and cash operating cycle

Working capital – WC investment levels

Working capital – Inventory management objective

Working capital – inventory EOQ

Working capital – ROLs and Inventory management

Working capital – AR objectives and credit policy

Working capital – Cost of financing and discounts

Working capital – Invoice discounting + Factoring

Working capital – Accounts Payable + managing foreign accounts

Working capital – cash management objectives

Working capital – Baumol Model

Working capital – Miller-orr Model

Working capital – funding strategies

Section C – Kandy Co

Tuition – Week 5

0/15

Risk management – Foreign currency risk and its types

Risk – Exchange rate spread and spot market

Risk – IRPT and PPPT

Risk – International Fisher effect

Risk – Practical approaches of hedging the currency risk

Risk – Forward exchange contracts

Risk – Money market hedge

Risk – Hedge using derivaties currency futures

Risk – Hedge using derivaties currency options

Risk – Interest rate risk introduction and gap exposure

Risk – Yield curve and the related theories

Risk – FRA and IRG

Risk – Interest rate futures

Risk – Interest rate options

Risk – Interest rate swaps and other methods

Tuition – Week 6

0/25

Business valuation – Ratio analysis

Business valuation – Profitability

Business valuation – Debt and gearing

Business valuation – Investor ratios

Business valuation – Introduction and types of valuation

Business valuation – Asset based valuation

Business valuation – Income based valuation

Business valuation – Divided valuation model

Business valuation discounted cash flow model

Business valuation – Valuation of debt and preference shares

Business valuation – EMH

Business valuation – Behavioral finance

Financial management – Function and objectives of FM

Financial management – Agency theory and corporate governance

Financial management – Incentive schemes and stakeholders

Financial management not for profit organizations and 3E

Financial management – Financial management scope

Economic environment – Macroeconomic objectives

Economic environment macroeconomic policies fiscal and monetary

Economic environment macroeconomic policies other policies

Financial markets financial institutions and intermediation

Financial markets – Introduction

Financial markets – Money markets

Financial markets – Capital markets

Financial markets – FinTech

Revision

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F9 Financial Management

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