Financial Management
Learn how businesses plan, raise, invest, and control funds to maximise value — covering time value of money, capital structure, working capital, capital budgeting, and more.
Course overview
Financial Management is concerned with the acquisition, financing, and management of assets with the overall goal of creating and maximising shareholder value. It involves investment, financing, and dividend decisions.
- Understand the objectives and functions of financial management
- Apply the time value of money and risk-return concepts
- Calculate cost of capital and design optimal capital structure
- Manage working capital, cash, receivables, and inventory
- Evaluate capital budgeting projects using NPV, IRR, Payback, and PI
- Decide dividend policy and analyse leverage
- Value businesses and understand mergers & acquisitions finance
Course chapters
Follow the chapters in a logical order for the best learning experience.
Introduction to Financial Management
Understand the meaning, nature, and scope of financial management.
Objectives and Functions
Learn the primary and secondary objectives and key functions of financial management.
Financial Management vs Accounting
Differentiate between financial management and financial accounting.
Time Value of Money
Calculate present value, future value, annuities, and perpetuities.
Risk and Return
Understand the relationship between risk and expected return.
Financial Planning
Learn the process and importance of long-term and short-term financial planning.
Cost of Capital
Calculate cost of equity, debt, preference capital, and WACC.
Capital Structure
Understand theories of capital structure and factors affecting it.
Leverage Analysis
Analyse operating, financial, and combined leverage.
Working Capital Management
Manage current assets and current liabilities efficiently.
Cash Management
Plan and control cash flows to maintain optimal liquidity.
Receivables Management
Design credit policy and manage accounts receivable effectively.
Inventory Management
Apply EOQ, safety stock, and other inventory control techniques.
Short-term Financing
Explore sources of short-term finance including bank credit and trade credit.
Capital Budgeting
Understand the capital budgeting process and project evaluation.
NPV and IRR
Calculate and interpret Net Present Value and Internal Rate of Return.
Payback Period
Use the payback and discounted payback methods for project appraisal.
Profitability Index
Calculate and use the profitability index for ranking projects.
Dividend Policy
Understand theories of dividend and factors affecting dividend decisions.
Retained Earnings
Analyse the role of retained earnings as a source of internal finance.
Financial Leverage
Measure the impact of debt on earnings per share and return on equity.
Operating Leverage
Understand how fixed operating costs affect EBIT.
Combined Leverage
Analyse the combined effect of operating and financial leverage.
Mergers and Acquisitions Finance
Understand the financial aspects of mergers and acquisitions.
Business Valuation
Learn methods of valuing a business — DCF, relative valuation, and asset-based.
Financial Forecasting
Prepare projected financial statements and cash budgets.
Budgeting and Budgetary Control
Use budgets as a tool for planning and control in financial management.
Financial Ratio Analysis
Use ratios for assessing liquidity, solvency, profitability, and efficiency.
Working Capital Financing
Explore various sources and strategies for financing working capital.
International Financial Management
Understand foreign exchange risk, international capital budgeting, and global financing.
Financial Management Case Studies
Analyse real-world financial management case studies.
Financial Management Practical Problems
Solve numerical problems on cost of capital, capital budgeting, and working capital.
Financial Management MCQs
Test your knowledge with multiple-choice questions.
Recommended learning approach
Start with core concepts (time value of money, risk-return), then move to financing decisions, working capital, capital budgeting, and advanced topics.