The aim of the course is to develop the knowledge and skills expected of a finance manager, in relation to investment, financing, and dividend policy decisions.
The course starts by introducing the role and purpose of the financial management function within a business. Before looking at the three key financial management decisions of investing, financing, and dividend policy, the course explores the economic environment in which such decisions are made.
The next section of the course is the introduction of investing decisions. This is done in two stages - investment in (and the management of) working capital and the appraisal of long-term investments.
The next area introduced is financing decisions. This section of the course starts by examining the various sources of business finance, including dividend policy and how much finance can be raised from within the business. It also looks at the cost of capital and other factors that influence the choice of the type of capital a business will raise. The principles underlying the valuation of business and financial assets, including the impact of cost of capital on the value of business, is covered next.