Financial Management (Paper 2.4)
This course aims to ensure that candidates develop a critical understanding of the nature and scope of financial management. They should be able to assess organisational funding requirements, calculate the cost of the available sources of finance, advise on the optimum financing structure for an entity, advise management on optimal investment decisions including mergers and acquisitions, manage working capital, apply business valuation techniques, and apply financial risk management techniques.
Instructor
John Lotsa
What You'll Learn
Course Curriculum
The Financial Management Function: Decisions, Objectives, Stakeholders and Agency
This lesson covers the role and importance of financial management in the pri...
The Economic and Regulatory Environment of Financial Management
This lesson looks at the environment in which financing and investment decisi...
Financial Markets, Institutions and the Efficient Market Hypothesis
This lesson covers the arena in which financing decisions happen: the types o...
Sources of Finance: Equity
This lesson covers the menu of long-term and short-term funds and the methods...
Sources of Finance: Debt
This lesson covers debt sources of finance with a focus on bank borrowing, bo...
Islamic Financing
This lesson covers the principles of Islamic financing, its main products, an...
The Cost of Capital: Equity, Preference Shares, Debt and WACC - Part 1
This lesson focuses on the first fully computational work of the module. Cand...
The Cost of Capital: Equity, Preference Shares, Debt and WACC - Part 2
This lesson focuses on the first fully computational work of the module. Cand...
The Cost of Capital: Equity, Preference Shares, Debt and WACC - Part 3
This lesson focuses on the first fully computational work of the module. Cand...
Portfolio Theory: Risk, Return and Diversification
This lesson covers the risk-return framework behind the cost of equity: risk ...
Capital Asset Pricing Model (CAPM)
This lesson covers the Capital Asset Pricing Model (CAPM), calculating betas ...
Asset and Equity Betas
This lesson builds on the beta (systematic) from the previous lesson and adds...
Capital Structure Theories: The Traditional and Modigliani-Miller Views
This lesson covers the question of whether an optimal mix of debt and equity ...
Gearing in Practice and the Dividend Decision
This lesson covers the completion of the financing decision. The first half a...
Public Sector Sources of Finance
This lesson covers the extension of financing decisions to the public sector....
Public Financing Initiatives: PPPs and PuP
This lesson looks at the various public sector financing initiatives, includi...
C1 The Capital Expenditure Decision: Process, Cash Flows and Non-Financial Factors
Chapter 13. This lesson covers the investment appraisal process: distinguishi...
C2 The Time Value of Money: Simple and Compound Interest, Annuities and Amortisation
Chapters 14; 15 (part). This lesson covers the quantitative foundation of DCF...
C3 Investment Appraisal Techniques: Payback, ARR, NPV and IRR
Chapter 15. This lesson covers the core appraisal techniques. Candidates appl...
C4 DCF in Practice: Taxation and Inflation
Chapter 16. This lesson focuses on making NPV analysis realistic by incorpora...
C5 Capital Rationing, Lease versus Buy and Asset Replacement Decisions
Chapters 17; 18. This lesson covers the completion of the optimal investment ...
C6 Risk and Uncertainty in Investment Appraisal
Chapter 19. This lesson covers the measurement of risk in capital expenditure...
D1 The Treasury Management Function and its Market Environment
Chapter 20. This lesson covers the role of an organisation's treasury managem...
D2 International Trade, Payment Methods and Foreign Exchange Risk
Chapter 21 (part). This lesson covers the international dimension of treasury...
D3 External Hedging: Forward Contracts, FRAs, Money Market Hedges and Swaps
Chapters 20 (part); 21 (part). This lesson covers the first set of external h...
D4 Hedging with Futures
Chapter 22. This lesson focuses on exchange-traded futures: the features of c...
D5 Hedging with Options
Chapter 23. This lesson covers the completion of the hedging toolkit with opt...
E1: Working Capital Management
This lesson covers the framing of working capital management: its roles and o...
E2: Inventory Management
This lesson covers quantitative control of inventory: identifying the costs o...
E3: Management of Receivables and Payables
This lesson covers both sides of trade credit. On receivables: the costs and ...
E4 Cash Management: Cash Budgets and Short-Term Investment
This lesson covers the management of cash itself: the reasons for holding cas...
E5: Cash Management: Baumol & Miller-Orr
This lesson covers the management of cash itself: the Baumol and Miller-Orr c...
F1: Mergers & Acquisitions
This lesson introduces the distinction between mergers, acquisitions and take...
F2: Introduction to Business Valuations
This lesson explains why businesses need to be valued, the circumstances that...
F3: Asset-Based Valuation Methods
This lesson covers how to value a business using its statement of financial p...
F4: Income-Based Valuation Methods
This lesson teaches share valuation using earnings multiples, specifically th...
F5: Dividend Valuation Models
This lesson develops more rigorous cash-flow-based share valuation using the ...
F6: Valuation of Debt & Preference Shares
This lesson completes the valuation toolkit by covering the market value of i...
G1 The PEFA Framework: Assessing Public Financial Management
Chapter 30. This lesson covers the Public Expenditure and Financial Accountab...
G2 Public Procurement: The PPA, Principles, Methods and Review Procedures
Chapter 31. This lesson covers the rules and procedures of public procurement...
H1 Developing Technologies in Finance: AI, Machine Learning, Digital Currencies and Digital Practices
Chapter 1 (part). This lesson covers the technology agenda in a single discus...
Student Feedback
With about 4 years of experience preparing ICAG students for the exams, complemented by about 5 years of hands-on experience in both the private and public sectors in auditing and accounting roles, respectively, I bring both examination expertise and practical, real-world insight to every session. Holding the NTC license as a professional teacher speaks volumes about my pedagogical skills.
John Lotsa
InstructorWith about 4 years of experience preparing ICAG students for the exams, complemented by about 5 years of hands-on experience in both the private and public sectors in auditing and accounting roles, respectively, I bring both examination expertise and practical, real-world insight to every session. Holding the NTC license as a professional teacher speaks volumes about my pedagogical skills.