FINANCIAL MANAGEMENT (5 Credits)

Learning Outcomes:

On successful completion of this Course, students will be able to: Discuss the role and purpose of the financial management function and the impact of the economic environment on financial management; Discuss and apply working capital management techniques; Perform effective investment appraisal; Identify and evaluate alternative sources of business finance; Discuss and apply principles of business and asset valuations; Explain and apply risk management techniques in business.

Topics:

1. The nature and purpose of financial management;
2. Financial objectives and relationship with corporate strategy;
3. Stakeholders and impact on corporate objectives;
4. Financial and other objectives in not-for-profit organisations;
5. The economic environment for business;
6. The nature and role of financial markets and institutions;
7. The nature and role of money market;
8. The nature, elements and importance of working capital;
9. Management of inventories, accounts receivable, accounts payable and cash;
10. Determining working capital needs and funding strategies;
11. Investment appraisal techniques;
12. Allowing for inflation and taxation in investment appraisal;
13. Adjusting for risk and uncertainty in investment appraisal;
14. Specific investment decisions (lease or buy, asset replacement, capital rationing);
15. Sources of, and raising business finance;
16. Estimating the cost of capital;
17. Sources of finance and their relative costs;
18. Capital structure theories and practical considerations;
19. Finance for small- and medium-sized entities;
20. Nature and purpose of the valuation of business and financial assets;
21. Models for the valuation of shares;
22. The valuation of debt and other financial assets;
23. Efficient market hypothesis (EMH) and practical considerations in the valuation of shares;
24. The nature and types of risk and approaches to risk management;
25. Causes of exchange rate differences and interest rate fluctuations;
26. Hedging techniques for foreign currency risk;
27. Hedging techniques for interest rate risk;
28. Case Study & Revision.