ACC 404: Financial Management    

Learning Outcomes

At the end of this course, students should be able to:

1. evaluate the management of working capital in organisations;
2. analyse and interpret financial statements;
3. assess and advise on business combination and restructuring such as mergers, takeovers, reconstruction, and re-organisation;
4. assess and justify different valuation methods covering assets, liabilities and shares;
5. evaluate and advise on management of financial risks;
6. discuss international financial management instruments and processes;
7. discuss the usefulness of spreadsheets in financial modelling;
8. evaluate capital budgeting and investment appraisal; and
9. discuss budgeting and budgetary controls.

Course Contents

The nature, scope and purpose of financial management. Sources and costs of short, medium and long-term finance. Sources and problems of new financing, capital budgeting and investment appraisal. Management of working capital. Analysis and interpretation of financial statements. Business mergers and take-overs. Determinants and implications of dividend policy, valuation of shares. Capital structure of firms. Cost of capital, mergers and acquisitions. Introduction to Capital Asset Pricing Model (CAPM) and portfolio theory. The capital structure. Budgeting & budgetary control. Introduction to financial derivatives and issues in international financial management. Management of financial risks including foreign currency risks, hedging, options, futures and other derivative instruments. International financial management. Application of spreadsheets in financial modelling.