Financial Management Course

Financial management is concerned with the decisions that a firm makes about investing in projects and with acquiring the finance for that investment and as such is only concerned with the future.

With a financial decision, the issue may not be whether it was right or wrong in predicting the future but whether an appropriate assessment and a reasoned argument were made in taking the initial decision. As we are dealing with uncertain future predictions, risk is a major factor to be taken into account. How likely is the prediction to happen?

This course will enable students with little knowledge of finance to lay the foundations for decision making in financial management.

Part One: The Investment Decision

Unit 1: Introduction to Financial Management

Section 1: Individual Consumption and Investment

Introduction

1.1 Consumer choice in a perfect market

1.2 Consumption-investment decision

1.3 Consumption, investment and the concept of utility

1.4 Wealth maximisation with borrowing and lending opportunities

Section 2: Fisher's Separation Theorem and Capital Market Efficiency

Introduction

2.1 Fisher's Separation Theorem

2.2 Capital market efficiency

2.3 Random walk concept

Section 3: Efficient Market Hypothesis

Introduction

3.1 EMH and financial management

3.2 EMH as 'bad science'

Unit 2: Capital Investment Appraisal

Section 1: Review of Capital Investment

Introduction

1.1 Capital budgeting decisions

1.2 Methods of capital investments appraisal

1.3 Time value of money

1.4 Internal rate of return

1.5 Computational and conceptual difficulties of IRR

1.6 Net present value

Section 2: Making Investment Decision

Introduction

2.1 Ranking and acceptance under IRR and NPV

2.2 Incremental IRR

2.3 Capital rationing and NPV

Section 3: Other Factors Affecting the Investment Decision

Introduction

3.1 Relevant cash flows

3.2 Capital budgeting and taxation

3.3 NPV and purchasing power risk

Section 4: Risk and Probability in Investment Decisions

Introduction

4.1 Uncertainty and investment appraisal

4.2 Concept of expected net present value

4.3 Standard deviation

4.4 Mean variance analysis

4.5 Certainty equivalent approach

4.6 Investment appraisal in practice

Unit 3: Working Capital Management

Section 1: Nature of Working Capital and its Management

Introduction

1.1 Objectives of working capital management

1.2 Structure of working capital

1.3 Accounting concept of working capital

1.4 Liquidity and accounting profitability

1.5 Working capital cycle

1.6 Operating efficiency

1.7 What happens in the real world

Section 2: Credit Management Strategies

Introduction

2.1 Credit management

2.2 Effective credit price

2.3 Effective discount price

2.4 Decision to discount

2.5 Opportunity cost of capital

2.6 Getting the right balance

2.7 Modelling the credit impact

2.8 Alternative credit policies and corporate profitability

2.9 What happens in the real world?

Part Two: The Dividend Decision

Unit 4: Equity Valuation, Stock Market Data and Investment

Section 1: Equity Valuation

Introduction

1.1 Capitalisation of dividends

1.2 Constant dividend valuation model

1.3 Dividend growth and capital gains models

1.4 Split growth in dividends

1.5 Equity value and capital gains

1.6 Estimating the growth rate in dividends

1.7 Earnings valuation models

Section 2: Interpreting Financial Ratios

Introduction

2.1 Dividend yield and PE ratio

2.2 Guide to stock exchange listings

Section 3: Corporate Investment Appraisal

Introduction

3.1 Cost of equity and investment appraisal

3.2 Taxation and the cost of equity

Unit 5: Dividend Decision and Valuation of Corporate Equity

Section 1: The Dividend Decision: Theoretical Considerations

Introduction

1.1 Dividend policy and equity value

1.2 Dividends as a passive residual

1.3 Shareholder preferences

1.4 Dividend irrelevancy hypothesis

1.5 Modigliani-Miller and the law of one price

1.6 Dividend policy under conditions of uncertainty: the Gordon Growth Model revisited

Section 2: Relevance and Reality of Dividend Policy

Introduction

2.1 Dividend policy and growth

2.2 Dividend policy and taxation

2.3 Clientele theory

2.4 Information content of dividend signalling

Part Three: The Finance Decision

Unit 6: Cost of Capital, Corporate Investment and Market Valuation

Section 1: Marketable Securities: Debentures

Introduction

1.1 Cost of debenture capital

1.2 Impact of taxation

1.3 Taxation lags and issue costs

Section 2: Alternative Sources of Finance and Capital Costs

Introduction

Section 3: Weighted Average Cost of Capital

Introduction

3.1 Defining a company's WACC

3.2 Assumptions underpinning WACC

3.3 Problems of estimating WACC in practice

Section 4: Shareholder Wealth and Capital Costs

Introduction

4.1 Shareholder wealth

4.2 MVA, EVA and free cash flow (FCF)

Unit 7: Financial Policy and Capital Structure

Section 1: Capital Structure and Gearing

Introduction

1.1 Capital structure, risk and investor returns

1.2 Capital structure and shareholder return

1.3 Capital gearing and the traditional view

Section 2: Capital Structure and Modigliani-Miller

Introduction

2.1 MM cost of capital hypothesis

2.2 Proposition I and the arbitrage process

2.3 Proposition I and market equilibrium

2.4 Proposition II and market equilibrium

2.5 Proposition III and market equilibrium

Section 3: MM in the Real World

Introduction

3.1 Rising cost of debt in a tax-less world

3.2 MM model, corporate taxation and value

3.3 MM formulation of capital costs with tax

3.4 Increasing costs of debt and bankruptcy in a taxed world

3.5 Personal taxation and the Miller model of general equilibrium

3.6 Brearley and Myers' reconciliation of debt and taxes

3.7 Market imperfection, behavioural theory and optimal

Part Four: The Portfolio Decision

Unit 8: Portfolio Decision and Risk Management

Section 1: Modern Portfolio Theory

Introduction

1.1 Development of modern portfolio theory

1.2 Combined risk of two investments

1.3 Correlation between two investments

1.4 Risk reduction, diversification and the correlation coefficient

Section 2: Minimising Risk: Portfolio Analysis

Introduction

2.1 Minimisation of risk for a two-asset portfolio

2.2 Finding the minimum variance of a two-asset portfolio

2.3 Multi-asset portfolio

2.4 The optimum portfolio

2.5 Significance of covariance terms

Section 3: Portfolio Analysis, Tobin, Risk and CAPM

Introduction

3.1 Market portfolio and Tobin's Separation Theorem

3.2 Systematic and unsystematic risk

3.3 Beta values and systematic risk

3.4 Traditional Capital Asset Pricing Model

3.5 Criticisms of the CAPM

3.6 Arbitrage Pricing Theory

3.7 Capital budgeting and CAPM

3.8 Estimation of project betas

3.9 Capital structure and the beta coefficient

3.10 Capital structure and the CAPM

3.11 Modigliani-Miller and the CAPM

For a more detailed syllabus on this course, click here

On completion of your course, you will receive two qualifications:

Qualification 1: Financial Management Diploma

Financial Management Diploma issued by Stonebridge Associated Colleges, entitling you to use the letters SAC Dip after your name.

Qualification 2: Level 4 Financial Management Award

This Course leads to an NCFE Level 4 Award Certificate for successful learners. That means that it is independantly accredited at a level of learning equivalent to level 4 on the National Qualifications Framework (NQF) for England, Wales and Northern Ireland (in which case GCSE's are at levels 1 and 2 and A Levels are at level 3). In accrediting the programme at level 4, NCFE attests that its learning outcomes are at an equivalent level to a level 4 national qualification.

This award has been designed by Stonebridge Associated Colleges to meet specific learners' or employers' requirements. Accreditation by NCFE is a guarantee of quality. It means that this learning programme has been scrutinised and approved by an independent panel of experienced educational professionals and is quality audited biannually by NCFE.

This course is an online course. With online study you have access to your entire course from the start of your studies. You can access your course materials, and submit all of your question papers to your personal tutor, online from anywhere in the World using your unique student account.

If you do not have Internet access, or would prefer to study this course via the traditional paper/postal based study method, you can find more information on the course by clicking on the link below.

With this course you will have unlimited access to your own personal tutor who specialises in their field of study. It is your personal tutor's role to ensure that you receive constructive feedback and to deal with any queries you may have. You are more than welcome to telephone, fax or email your personal tutor.

You will also have access to a dedicated and friendly team of administrators and course advisors who offer sound and professional guidance and advice when you need it. This ensures that you will never feel neglected and that you will always succeed!

There is no experience or previous qualifications required for enrolment on this course. It is available to all students, of all academic backgrounds.

This is only an approximate figure and is dependant upon how much time you can dedicate to your studies and how well you grasp the learning concepts in the course material. Furthermore, at the end of each lesson there is a question paper that needs to be completed and returned to your tutor. You should allow at least 1 - 2 hours of study to complete each question paper.

The approximate amount of time required to complete the course is: 120 hrs.

Assessment Method

After each lesson there will be a question paper, which needs to be completed and submitted to your personal tutor for marking. This method of continual assessment ensures that your personal tutor can consistently monitor your progress and provide you with assistance throughout the duration of the course.

What's Included

• All study materials
• Study Guide
• Full Tutor and Admin support
• The course fee includes the ASET registration and certification fee (valued at up to £30.00).

What is NCFE

NCFE is the UK's longest established awarding body, recognised as a highly professional and responsive organisation, committed to maintaining excellent customer service and a friendly approach.

NCFE is recognised as an awarding body by the qualification regulators ('regulators') for England, Wales and Northern Ireland. The regulators are the Office of the Qualifications and Examinations Regulator (Ofqual) in England, the Department for Children, Education, Lifelong Learning and Skills (DCELLS) in Wales and the Council for Curriculum, Examinations and Assessment (CCEA) in Northern Ireland.

Accreditation by NCFE is a guarantee of quality. It means that a learning programme has been scrutinised and approved by an independent panel of experienced educational professionals and is quality audited biannually by NCFE. Learners successfully completing NCFE accredited programmes receive an externally accredited and nationally recognised NCFE certificate.

For more information on this award, click here

Below you will find a list of courses that previous students have taken to complement their course. We hope that this list will give you some idea of the types of progression courses we offer, or alternative course options that may be of interest to you.

• Business Accounting - Accounting has become an essential part of business life, and the knowledge and skills that you will learn in your studies will give you a broader and more experienced view of business life. The course ...
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• Accounting - Accounting is designed to help those with an interest in a business, or other organisation, to assess its financial position and performance. It aims to communicate relevant economic information to interested parties and, as a result, ...
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• Accounting With Computers (Skills Course) - This course requires no previous knowledge of accounting or finance. This course is a guide to how computers can help you with your accounting. ...
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• Annual Accounts and the Inland Revenue (Skills Course) - How your accounts are prepared. What they mean to you, your creditors and the Inland Revenue. ...
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• Book-keeping (Skills Course) -  The aims of this Business Skills Bookkeeping Course are to: understand why book-keeping is important examine a wide variety of book-keeping options and select the ...
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• Business Finance - This programme is designed for people seeking to understand and apply the principles of finance and financial control of a business. The course is particularly suited to the general manager with responsibility for a small organisation ...
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To help you broaden your skills, update your expertise in a particular field or get a competitive edge on that job you're after, we have also included all the resources below absolutely FREE for you to use when you register for your course! Click title below for more details.

This course comes with a series of FREE online videos. The normal price per series is £50.00, however, enrol on this course through Elearnuk and you will have FREE and unlimited access to the series for one year.

PLEASE NOTE: These videos are purely supplemental and are for information purposes only. They will have no bearing on your programme outcome.

The series of online videos that accompanies this course is as follows: