Financial Management I Pdf notes – BAF 2104 MKU

COURSE CONTENT

1.0 Introduction.

• Nature and scope of financial management
• Role and functions of a finance manager
• Objectives of a firm; profit maximization; wealth maximization, social responsibility

2.0 Sources of company finance

• Short term sources of fund; short term leases, bank overdraft
• Long term sources of funds; ordinary share capital, preference shares, debentures, long leases hire purchase

3.0 Financial markets and financial intermediaries

• Stock markets; primary and secondary markets; Other types of financial markets;
• Terminologies used on the stock market; Central Depository systems (CDS);
• New developments in financial markets

4.0 Financial statement analysis and financial forecasting

Click here to Purchase Financial Management I Pdf notes – BAF 2104 MKU
• Users of ratios
• Classifications of ratios; liquidity; profitability; dividend; shareholders

5.0 Capital Budgeting

• Time Value of Money; Compounding and discounting of cash flows
• Capital investments; types of capital investments projects
• Methods of capital investment appraisals
• Non-Discounted Cash Flow Methods: payback period, accounting rate of return
• Discounted Cash Flow Methods: Net present value, Internal rate of return, profitability index

6.0 Cost of Capital

• Importance of cost of capital
• Weighted average cost of capital (WACC); Specific cost of debt, equity, preference shares
• Marginal cost of capital

Click here to Purchase Financial Management I Pdf notes – BAF 2104 MKU

MOUNT KENYA UNIVERSITY