F9 – Financial Management

Tips include:

Investment appraisal

NPV/IRR with tax and possibly inflation.

Payback, replacement analysis and capital rationing

Working Capital Management

Receivables and Payables

Business Finance

Gearing/capital structure calculations and comment thereon

Cost of Capital

CAPM theory, its advantages and disadvantages, and its use in calculating a cost of equity and a risk adjusted WACC

Risk Management

Hedging foreign exchange risk and interest rates and risk management
Valuations

Asset and cash flow based values

The Financial Management Function and the impact of the economic environment upon it

Objectives in both the corporate and NFP sectors