Contents
Introduction
Helping you to pass v
Studying Financial Management vii
The exam ix
Part A Financial management function
1 Financial management and financial objectives 3
Part B Financial management environment
2 The economic environment for business 37
3 Financial markets, money markets and institutions 57
Part C Working capital management
4 Working capital 79
5 Managing working capitai 93
6 Working capital finance 119
Part D Investment appraisal
7 Investment decisions 145
8 Investment appraisal using DCF methods 161
9 Allowing for inflation and taxation 181
10 Project appraisal and risk 195
11 Specific investment decisions 211
Part E Business finance
12 Sources of finance 231
13 Dividend policy 265
14 The cost of capital 277
15 Gearing and capital structure 303
16 Capital structure 327
Part F Business valuations
17 Business valuations 349
18 Market efficiency 371
Part G Risk management
19 Foreign currency risk 383
20 Interest rate risk 411
Appendix - Mathematical tables 427
Practice question bank 431
Practice answer bank 463
Bibliography 513
Index 517