FINANCIAL MANAGEMENT - TABLE OF CONTENTS TABLE OF CONTENTS.1 CHAPTER 1.3 NATURE OF BUSINESS FINANCE.3 Objectives.3 Financial goals of the firm.5

FINANCIAL MANAGEMENT - TABLE OF CONTENTS TABLE OF...

This preview shows page 1 - 6 out of 303 pages.

TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................... 1 CHAPTER 1 ..................................................................................................................................... 3 NATURE OF BUSINESS FINANCE ................................................................................................ 3 Objectives ........................................................................................................................................ 3 Financial goals of the firm ................................................................................................................ 5 Non-financial goals .......................................................................................................................... 7 AGENCY THEORY .......................................................................................................................... 8 Types of Business Organizations .................................................................................................. 13 CHAPTER 2 ................................................................................................................................... 22 FINANCIAL STATEMENTS ANALYSIS ......................................................................................... 22 Objectives ...................................................................................................................................... 22 Sources of Information .................................................................................................................. 24 Types of ratios ............................................................................................................................... 26 Financial forecasting ...................................................................................................................... 34 CHAPTER 3: .................................................................................................................................. 47 TIME VALUE OF MONEY .............................................................................................................. 47 Objectives ...................................................................................................................................... 47 1.compounding .............................................................................................................................. 48 2. Discounting ............................................................................................................................. 57 CHAPTER 4 .................................................................................................................................. 68 COST OF CAPITAL ....................................................................................................................... 68 Objectives ...................................................................................................................................... 68 Specific costs of capital ................................................................................................................. 69 CHAPTER 5: .................................................................................................................................. 84 CAPITAL BUDGETING DECISIONS ............................................................................................ 84 Objectives ...................................................................................................................................... 84 CAPITAL BUDGETING TECHNIQUES ......................................................................................... 92
FINANCIAL MANAGEMENT 2 Non-discounted cash flow techniques ........................................................................................... 93 discounted cashflow techniques ................................................................................................... 98 CHAPTER 6 : ............................................................................................................................... 117 BASIC VALUATION MODELS ..................................................................................................... 117 Objectives .................................................................................................................................... 117 Bond valuation ............................................................................................................................. 119 preference shares valuation ........................................................................................................ 127 valuation of ordinary shares ........................................................................................................ 128 CHAPTER 7: ............................................................................................................................... 136 WORKING CAPITAL MANAGEMENT ........................................................................................ 136 Content ........................................................................................................................................ 136 a .management of inventory ........................................................................................................ 149 b. Management of cash ............................................................................................................. 155 c management of receivables ..................................................................................................... 161 d. Management of current liablities ............................................................................................. 174 CHAPTER: 8 ................................................................................................................................ 184 SOURCES OF FUNDS ............................................................................................................... 184 Objectives .................................................................................................................................... 184 EQUITY FINANCE ....................................................................................................................... 186 1) ordinary share capital .............................................................................................................. 186 2. Term loan ................................................................................................................................. 195 3. Preference shares (quasi-equity) ............................................................................................ 198 4. Venture capital ......................................................................................................................... 198 5.lease financing .......................................................................................................................... 200 6.hire purchase ............................................................................................................................ 204 Mortgages .................................................................................................................................... 208
FINANCIAL MANAGEMENT 3 CHAPTER 9: ............................................................................................................................... 211 DIVIDEND POLICY ...................................................................................................................... 211 CHAPTER 10: ............................................................................................................................. 222 FINANCIAL MARKETS ............................................................................................................. 222 Financial markets i. Primary and secondary market 223 capital market authority (cma) ..................................................................................................... 229 money market instruments .......................................................................................................... 233 special financial institutions ......................................................................................................... 238 other specialised financial institutions ......................................................................................... 240 ANSWERS TO REINFORCING QUESTIONS ........................................................................... 244 GLOSSARY ..................................................................................... Error! Bookmark not defined. TABLES ........................................................................................... Error! Bookmark not defined. CHAPTER 1. NATURE OF BUSINESS FINANCE Objectives At the end of this lecture students should be able to: 1.Define finance and discuss the scope and decision areas in financial management. 2.Discuss the goals of financial management.
3.Explain the shareholder/management (agency) conflicts and possible solutions. 4.Describe the types of Business Organizations 5.Describe Risk and required rate of return. 6.Describe investor’s risk profile.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture