Module
Financial Management
Financial Management
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- 01Finance turns strategy into three decisions
- 02Three accounting functions answer different questions
- 03Objectives make strategy measurable
- 04Wealth beats profit as the main objective
- 05Total shareholder return joins price and dividend
- 06Stakeholders bring different definitions of success
- 07Conflict becomes visible when resources are scarce
- 08Agency begins when owners delegate control
- 09Rewards should align without inviting manipulation
- 10Governance and listing rules constrain agency risk
- 11Ratios measure objectives but never explain themselves
- 12Not-for-profit changes the objective, not the need for finance
- 13Value for money has three linked tests
- 14Mission needs a balanced performance dashboard
- 15Macroeconomic targets shape financial choices
- 16Fiscal and monetary policy travel through cash flows
- 17Interest and exchange policies redistribute risk
- 18Economic policy enters every forecast
- 19Competition policy protects the market process
- 20Green policy can move value before cash is paid
- 21Money markets and capital markets serve different horizons
- 22Intermediaries transform more than money
- 23Stock and bond markets create issuance and liquidity
- 24Return is the price investors demand for risk
- 25Fintech changes the channel, not the finance logic
- 26Money markets keep short-term systems liquid
- 27Money-market instruments quote value differently
- 28Working capital is the short-term engine
- 29Liquidity and profitability pull in opposite directions
- 30The cash operating cycle reveals the funding gap
- 31Working capital ratios tell one connected story
- 32Current and quick ratios test short-term cover
- 33Activity days expose where cash is trapped
- 34EOQ balances ordering and holding cost
- 35Quantity discounts require total annual cost
- 36Just in time replaces inventory with reliability
- 37Creditworthiness comes before collection
- 38Receivables need ownership from invoice to cash
- 39A settlement discount must earn more than it costs
- 40Factoring sells a service as well as finance
- 41Foreign receivables carry two risks
- 42Trade credit is spontaneous finance with conditions
- 43Supplier discounts turn delay into an expensive loan
- 44Foreign payables reverse the currency exposure
- 45Cash exists for transactions, caution and opportunity
- 46A cash forecast is a timing model
- 47Central treasury pools information and cash
- 48Baumol treats cash like inventory
- 49Miller-Orr creates control limits for uncertain cash
- 50Short-term investment starts with safety
- 51Working capital need follows the business model
- 52Permanent and fluctuating assets need different funding
- 53Short-term finance trades cost for refinancing risk
- 54Matching aligns finance life with asset need
- 55Funding policy reveals risk appetite
- 56Relevant cash flows change because the project exists
- 57Sunk, committed and opportunity costs behave differently
- 58Payback answers how quickly cash returns
- 59Discounted payback adds time value but not full value
- 60ROCE converts project profit into a percentage
- 61Time gives money an opportunity cost
- 62NPV measures value added today
- 63IRR estimates the break-even discount rate
- 64DCF dominates screening methods, and NPV dominates conflict
- 65Nominal cash flows need a nominal rate
- 66Specific inflation compounds each cash-flow driver
- 67Tax follows taxable cash with a timing rule
- 68Tax-allowable depreciation changes cash through tax
- 69After-tax cash needs an after-tax return
- 70Risk has probabilities; uncertainty resists them
- 71Sensitivity asks how far an assumption can move
- 72Probability turns scenarios into an expected value
- 73Risk adjustments answer different questions
- 74Lease or buy compares financing cash flows
- 75Equivalent annual cost compares unequal lives
- 76Equivalent annual benefit standardises repeating value
- 77Divisible capital rationing uses value per scarce euro
- 78Indivisible projects require combinations
- 79Capital rationing may be hard or self-imposed
- 80Short-term finance fills timing gaps
- 81Long-term finance shares risk in different ways
- 82Equity can be raised with different reach and cost
- 83Islamic finance earns return without riba
- 84Internal finance begins with cash already controlled
- 85Dividend theory separates value from preference
- 86Practical dividend policy protects continuity and choice
- 87The dividend growth model prices required equity return
- 88DGM is simple because its assumptions are strong
- 89Diversification removes only specific risk
- 90CAPM prices systematic risk
- 91Beta links the company to the market portfolio
- 92Degear the proxy, then regear the project
- 93Irredeemable debt is a perpetuity
- 94Redeemable debt cost includes capital gain or loss
- 95Convertible debt gives the investor a valuable choice
- 96Preference and bank finance use different cost logic
- 97WACC combines current required returns
- 98Average and marginal capital costs answer different questions
- 99Debt is cheaper until its risk changes the price
- 100Creditor hierarchy prices protection
- 101Gearing ratios show who finances the business
- 102Operating and financial gearing multiply volatility
- 103Interest cover tests headroom, not payment timing
- 104Finance changes position, risk and shareholder wealth
- 105WACC is valid only inside a risk boundary
- 106CAPM isolates project risk better than company WACC
- 107Traditional capital structure predicts an optimum
- 108MM without tax says financing cannot create value
- 109MM with tax values the interest shield
- 110Market imperfections make capital structure practical
- 111Pecking order follows information cost
- 112SMEs face funding, maturity and security gaps
- 113SME support can close information and risk gaps
- 114Modern SME finance widens choice and due diligence
- 115A valuation begins with purpose and information
- 116Asset values establish a floor, not always a future
- 117P/E converts maintainable earnings into equity value
- 118Earnings yield is the inverse lens
- 119Dividend models value minority cash rights
- 120DCF values the cash a controller can influence
- 121Irredeemable claims are valued as perpetuities
- 122Redeemable and convertible debt are discounted cash-flow assets
- 123Market efficiency has three information sets
- 124Practical valuation discounts are about market reality
- 125Behavioural finance explains predictable irrationality
- 126Foreign currency risk has three time horizons
- 127Interest risk includes repricing gaps and imperfect hedges
- 128Purchasing power parity links inflation and currency
- 129Interest rate parity links spot, forward and rates
- 130Four-way equivalence connects the full chain
- 131A currency quote is a unit equation
- 132Internal hedges change operations before markets
- 133A forward contract exchanges upside for certainty
- 134Money-market hedge for a receipt borrows the foreign present value
- 135Money-market hedge for a payment deposits the foreign present value
- 136Hedge comparison includes certainty and practicality
- 137Currency derivatives reshape the payoff
- 138Matching and smoothing reduce interest exposure internally
- 139An FRA fixes a future interest period
- 140Interest derivatives cap, floor or swap exposure
- 141The yield curve tells a maturity story
- 142Find the requirement before the numbers
- 143A spreadsheet should expose the finance logic
- 144The three-hour exam is a live cash budget
- 145Present a decision, not a data dump
- 146Congratulations on completing the module