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Financial Planning & Control syllabus

MTM 50414 units · 47 topicsAcademic year 2083/84
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Financial Planning & Control

14 units

1. Introduction (4 LH)

  1. Importance of finance
  2. Finance function and organizational structure
  3. Goals of the firm
  4. Agency relationship

2. Financial Statements and Cash Flows (2 LH)

  1. Balance Sheet
  2. Income Statement
  3. Statement of Cash Flows

3. Analysis of Financial Statements (4 LH)

  1. Importance, uses and users of ratio analysis
  2. Liquidity and asset management ratios
  3. Debt management and profitability ratios
  4. Du Pont analysis and limitations

4. Time Value of Money (5 LH)

  1. Time lines; future and present value
  2. Interest rates and time
  3. Annuities; even and uneven cash flows
  4. Compounding effects and loan amortization

5. Bonds and Their Valuation (4 LH)

  1. Meaning and characteristics of bonds
  2. Bond valuation and yields

6. Stocks and Their Valuation (3 LH)

  1. Meaning and characteristics of common stocks
  2. Constant and non-constant growth valuation
  3. Corporate valuation model
  4. Preferred stock characteristics and valuation

7. Cost of Capital (4 LH)

  1. Cost of debt, preferred stock and common stock
  2. Weighted average cost of capital
  3. Factors and problem areas in cost of capital

8. Strategic Investment Decisions (6 LH)

  1. Importance of capital budgeting
  2. Capital budgeting decision rules
  3. NPV and IRR comparison
  4. Profitability index

9. Breakeven Analysis and Leverage (3 LH)

  1. Breakeven analysis and fixed/variable costs
  2. Determining breakeven point
  3. Operating, financial and combined leverage

10. Working Capital Management (2 LH)

  1. Meaning and importance of working capital
  2. Factors affecting working capital
  3. Cash conversion cycle

11. Cash Management (2 LH)

  1. Introduction, significance and functions
  2. Cash Management Techniques and Cash Budget

12. Receivables Management (2 LH)

  1. Introduction, purpose and significance
  2. Role of Credit Manager
  3. Cost of receivables and elements of credit policy

13. Inventory Management (4 LH)

  1. Introduction, significance and objectives of inventories
  2. Basic Inventory Costs and Economic Order Quantity
  3. Reorder point, safety stock and quantity discount
  4. Determinants of inventories and control system

14. Dividend Policy (3 LH)

  1. Meaning and nature of dividend policy
  2. Dividend payment procedure
  3. Factors affecting dividend policy
  4. Stock split