BUSN9227 Financial Management

This topic introduces students to the major concepts and analytical tools used in the theory and practice of financial management. The topic will cover the role and objectives of financial management, business financial planning and ratio analysis, working capital management, risk and return, capital budgeting, the capital market, sources of finance, the cost of capital, operating and financial leverage, the financial structure decision and the dividend decision.

This topic aims to:

• Identify the major concepts and analytical tools used in the theory and practice of financial management
• Examine the role and objectives of sound financial planning and management in business organisations

1. Explain techniques and rules in the process of working capital management
2. Explain the time value of money, calculate future and present value of a cash flow, and value bonds
3. Analyse the cost of capital, calculate weighted average cost of capital
4. Discuss the nature of share capital and value shares
5. Describe and critique the nature of long term investing decisions and capital budgeting process
6. Discuss dividend theory and policy, optimal capital structure, calculate the degree of operating and financial leverage