PART I: CONCEPT OF FINANCIAL MANAGEMENT

 Meaning and role of financial management

 Scope of financial management
 Role of finance manager
 Corporate objectives
 Financial market

PART II: PRINCIPLES OF VALUATION

TIME VALUE OF MONEY

 Meaning of Time Value of Money

 Reasons for Time Value of Money
 Compounding (Present to future) and Discounting (future back to present)
Lumpsum and annuity.
 Application of Time Values

RETURN AND RISK

Dividend
Capital Gain
Return = Dividend + Capital Gain
10,000,000 + 600.000

D+(P s−Pb )
Percentage of Return =
Pb
Whereby D = Dividend per share
Ps = Price at sale per share
Price at buy per share
1000
2400, 3000

INVESTMENT DECISION
FINANCING DECISION
WORKING CAPITAL MANAGEMENT
Debtors management
Creditors management
Cash management

FINANCIAL MARKET
Stock Exchange markets (Capital) – Primary markets
Secondary markets
Hedge markets
Foreign exchange markets

PART II: PRINCIPLES OF VALUATION

TOPIC: TIME VALUE OF MONEY
CONCEPT OF TIME VALUE OF MANEY
 Meaning of Time value of money
 Reasons of Time Value of money
 Compounding and discounting (Single and multiple cashflows
 Applications of Time Value of Money
Retirement plans
Sinking funds
 Valuation of financial instruments

RETURN AND RISKS

 Meaning and measurement of shareholder’s returns
 Meaning and measurement of Investment risks.
 Measurement of market risk
 Capital Asset Pricing Model
Meaning and assumptions
Determinant of portfolio strategy

CLASSIFICATION OF ASSET
Property, Plant and Equipment (IAS 16) –Own or administrative use
Investment Properties (IAS 40) – Rental income or capital gain
Intangible Asset (IAS 38) –
Biological Assets (IAS 41) – Animals and Plants
Financial Assets – Stocks/ Shares and debt