Critical understanding of financial management — funding requirements, cost of capital, optimal financing structure, investment decisions, mergers & acquisitions, working capital, business valuation and financial risk management.
Builds on: 1.4 Introduction to Cost & Management Accounting
Financial Management is the bridge between accounting and corporate finance. It equips candidates with the analytical tools to evaluate financing decisions, capital investment proposals, and risk management strategies. The paper covers the fundamental theories of corporate finance — dividend policy, capital structure, efficient markets — alongside practical techniques for business valuation, working capital management, and hedging foreign currency and interest rate risks. This paper is core preparation for the Strategic Case Study at Level 3.
Equity, debt, hybrid instruments; WACC calculation; Modigliani-Miller propositions.
Optimal gearing, pecking order theory, financial distress costs, and their impact on firm value.
Discounted cash flow methods, capital rationing, project ranking, and real options.
Cash conversion cycle, debtor/creditor management, inventory management models (EOQ), and short-term financing.
Asset-based, earnings-based (P/E), dividend valuation model, and DCF approaches to valuing a business.
Strategic rationale, due diligence, valuation of targets, financing acquisitions, and post-merger integration.
Currency risk, interest rate risk, commodity risk — hedging with forwards, futures, options, and swaps.
Show all your working in NPV and WACC calculations — partial marks are available at every step. In discussion sections, always present both sides of an argument before recommending a course of action.
Corporate Finance Analyst
Treasury Manager
Investment Analyst
M&A Adviser
Chief Financial Officer
Join hundreds of ICAG students at Profs Training Solutions. HD video lectures, AI-powered practice, live classes, and a 92% first-attempt pass rate.
Initializing StudyMate