Financial Strategy
Stonebridge College.
Summary
Overview
This course builds directly on the Finance and Accounting Foundation Course.
Topics in accounting usually have a fairly clearly defined answer. There are techniques available to generate a solution, often in the form of an accounting statement. However, accounting, especially financial accounting, tends to be historic in outlook (i.e. backward-looking), focusing on reporting and analysing past behaviour and performance.
The perspective of finance is rather different. Finance focuses on recommending appropriate financial policies designed to optimise the interest of the owners of the firm. Because none of us can predict the future, our policy recommendations are often hedged in with uncertainty.
Description
Unit 1: Introductory Issues and Concepts
Introduction
Objectives
Role of the financial manager
The finance decision
Concept of value
Value determinants
Risk-return trade-off
The accountant versus the strategist
Delivering value
Limitations on value-creating behaviour
Corporate governance
Summary
Unit 2: Company Valuation
Introduction
Objectives
Valuation of quoted companies
Valuing unquoted companies using alternative valuation techniques
Shareholder value analysis (SVA)
Summary
Unit 3: Investment Decisions
Introduction
Objectives
Investment decisions and appraisal methods
Investment appraisal techniques
Discounting methods/discounted cash flow (DCF)
Applications of project appraisal
Risk and uncertainty in project appraisal
Summary
Unit 4: Financing Decisions
Introduction
Objectives
Financial planning
Working capital management
Sources of long-term finanace
Summary
Unit 5: Required Return on Investment
Introduction
Objectives
Cost of debt
Cost of equity (Return required by shareholders)
Capital Asset Pricing Model (CAPM)
Required rate of return when equity and debt are combined
Gearing and company value
Summary
Unit 6: Delivering Value
Introduction
Objectives
Total shareholder return (TSR)
Theories of dividend policy
Evaluation of the irrelevance argument
Objections to divided irrelevence
Divided policy: key determinants
Share buy-backs
Summary
Requirements
There is no experience or previous qualifications required for enrolment on this course. It is available to all students, of all academic backgrounds.
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