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Nick Duley
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Decks in this class (81)
Financial Management Purpose
What is fianncial management,
Main financial objective of a bus...,
What is the acquisition of financ...
51
cards
Financial Management Purpose (2)
What if preference shares have be...,
Issue with eps,
Possible measure for economy in a...
18
cards
Formulas Used
Capital gain,
Dividend yield,
Total shareholder returns
32
cards
Financial Management Environment (1)
What is financial intermediation,
What is aggregation,
What is maturity transformation
29
cards
Financial Management Environment (2)
Why are macroeconomic policies ad...,
What is monetary policy,
What is a financial instrument
30
cards
Financial Management Environment (3)
Normal way of measuring inflation,
Key objective of inflation,
What is demand pull inflation
22
cards
Financial Management Environment (4)
What is a primary market activity,
What is a secondary market activity,
What is principal role of money m...
29
cards
Financial Management Environment (5)
Factors that affect interest rates,
Do financial intermediaries affec...,
What is liquidity preference theory
9
cards
Investment Decisions
What is capital expenditure,
What is revenue expenditure,
What if company s main objective ...
19
cards
Discounted Cash Flow
What is meant by simple interest,
What is meant by compound interest,
What is meant by eair
32
cards
Relevant Cash Flows
When can cash inflows and outflow...,
What are incremental cash flows,
An example of incremental cash flows
29
cards
Relevant Cash Flows (2)
Why is inflation a problem for pr...,
What must be distinguished with i...,
What is a specific inflation rate
26
cards
Application of DCF Technique
What is capital rationing,
What is hard capital rationing,
What is soft capital rationing
22
cards
Application of DCF Technique (2)
Implications for lease versus buy...,
What does no tax shield on debt mean,
Situations where a business is no...
10
cards
Project Appraisal Under Risk
What is a risk,
What is uncertainty,
What is sensitivity analysis
23
cards
Equity Finance
What is the main internal source ...,
How can internal finance be gener...,
Why is retained cash the source o...
18
cards
Equity Finance (2)
What is a public issue,
What is a offer for sale,
What is a placing
22
cards
Equity Finance (3)
What is a constant dividend policy,
What is constant growth,
What is constant payout ratio
17
cards
Equity Finance (4)
Three likely characteristics of sme,
Why are smes viewed as unattracti...,
What is done when an sme requests...
25
cards
Debt Finance
What are preference shares,
What are the features of preferen...,
Advantages of preference shares
20
cards
Debt Finance (2)
What are bank loans,
Advantage of bank loans,
Disadvantages of a bank loan
22
cards
Debt Finance (3)
What is a bill of exchange,
What does an exporter typicall re...,
What may an exporter do in a bill...
19
cards
Debt Finance (4)
What is p2p lending,
Advantages of p2p lending income,
Advantages of p2p lending access
4
cards
Cost of Capital
What is repaid first in the credi...,
What is 2nd in the hierarchy in t...,
What is 3rd in the hierarchy in t...
24
cards
Cost of Capital (2)
Assumption for dvm investors,
Assumption for dvm capital market,
Assumption for dvm dividend paid
19
cards
Cost of Capital (3)
What are irredemable loan notes,
What are redeemable loan notes,
Why are cash flows not perpetuity...
8
cards
Weighted Average Cost of Capital and Gearing
How are companies ususally financed,
What does wacc represent,
What happens if the company s sha...
28
cards
Wegithed Average Cost of Capital and Gearing (2)
Modigliani and miller mm assumtpi...,
Without tax theory for mm conclusion,
With tax theory for mm conclusion
14
cards
Capital Asset Pricing Model
How is the investment risk split,
What is unsystematic risk,
What is systematic risk
17
cards
Capital Asset Pricing Model (2)
What is the aim of a company with...,
If project has the same risk as e...,
If the project is of a different ...
15
cards
Capital Asset Pricing Model (3)
Assumption of capm risk,
Assumption of capm unsystematic,
Assumption of capm risk free
13
cards
Working Capital Management
What is working capital,
How to calculate working capital,
What must be done to remain in bu...
16
cards
Working Capital Management (2)
Whatever level of current assets ...,
What must management decide for i...,
What is generally true
22
cards
Working Capital Management (3)
What is the working capital cycle,
How is inventory purchased,
What if business holds its invent...
18
cards
Working Capital Management (4)
What is a small business required...,
How long could it take for cash f...,
The problem with bank overdraft a...
8
cards
Invnetory Management
What is inventory control,
Why is inventory control importan...,
Why is inventory control importan...
21
cards
Inventory Management (2)
What happens when demand is known...,
What if the level of demand is no...,
What is the purpose of jit
14
cards
Cash Management
What is treasury management,
How is surplus cash invested,
Advantage of treasury management ...
19
cards
Cash Management (2)
What are potential sources of sho...,
What are potential sources of sur...,
What is overfunding
21
cards
Cash Management (3)
What does baumol model suggest,
What does the model suggest,
What does baumol model consider
14
cards
AR and AP Management
Questions for granting credit,
How are settlement discounts infl...,
What must company ensure with the...
19
cards
AR and AP Management (2)
Where is the risk of default higher,
What does the exporter need to co...,
Bill of exchange
20
cards
AR and AP Management (3)
What is invoice discounting,
What happens when a business ente...,
What happens when customers pay t...
21
cards
AR and AP Management (4)
What would save 250 on an invoice...,
How to decide whether settlement ...,
What must cost of discount be exp...
11
cards
Risk Management (1)
If a company is exporting from sa...,
What is the spot exchange rate,
What is the forward exchange rate
25
cards
Risk Management (2)
What is translation risk,
If domestic currency has apprecia...,
If the domestic currency has depr...
16
cards
Risk Management (3)
How can a company transfer transa...,
What is leading and lagging,
If the domestic currency is expec...
10
cards
Risk Management (4)
What is a forward exchange contract,
Why is there no premium on forwar...,
What is the result of forward con...
16
cards
Risk Management (5)
What is a futures contract,
What can a company choose with fu...,
What does the price of a currency...
18
cards
Risk Management (6)
What is gap exposure,
How can an organisation s gap exp...,
What is negative gap
20
cards
Risk Management (7)
What can borrowers do in interest...,
What can lenders depositors do in...,
What is a cap
9
cards
Business Valuation (1)
Reasons for business valuation,
What should a 20 share of a compa...,
What should a 80 share be worth
8
cards
Business Valuation (2)
What is the nbv method,
Weaknesses of nbv balance sheet,
Weaknesses of nbv non current
17
cards
Business Valuation (3)
What are shares in unquoted compa...,
What are unquoted companies not r...,
What is meant by thin trading
22
cards
Business Valuation (4)
What are the market value of any ...,
What are preference dividends,
Issue of a fixed percentage of sh...
15
cards
Ratio Analysis
What does roe measure,
What can a higher roe indicate,
When is roe particularly useful
15
cards
Management of Working Capital OT
Non0current assets,
What do non current assets do,
Any normal business
25
cards
Islamic FInance OT
Riba,
Murabaha,
Ijara
6
cards
Valuation of Securities and Practical Issues OT
Small number of shares in a quote...,
If we re taking over the company,
Dividend valuation model disadvan...
11
cards
Inventory Management OT
Eoq,
What is eoq ordering,
Cost of ordering a year
23
cards
JIT OT
Benefit of low inventory,
Why do we have inventory,
Reasons to avoid delays in produc...
7
cards
Management of Receivables and Payables OT
Keep receivables,
Do we have to keep credit,
Credit checks
22
cards
Cash Management and Budgets OT
Three reasons for holding cash,
What is transaction motive,
What is precautionary motive
15
cards
Baumol and Miller-Orr OT
What is baumol,
Baumol model calculations,
Economic quantity in baumol
9
cards
WACC for Investment Appraisal OT
When to use wacc,
Raise more equity,
What determines how much investor...
4
cards
Effect of Changes in Gearing OT
More debt finance,
Cost of capital,
Optimal level achieved next steps
16
cards
Source of Finance Equity (OT)
What determines how we raise money,
If company is quoted,
What is public issue
26
cards
Source of Finance Debt (OT)
What is meant by long term borrowing,
Only way for unquoted company to ...,
Quoted company finance
24
cards
Sensitivity Analysis (OT)
Issue with wrong estimates,
Is sensitivty analysis a cash flo...,
What is contribution
13
cards
Expected Values (OT)
Demand in expected values,
In a discounted cash flow,
Issue with expected value
5
cards
CAPM and MM Combined OT
Capm looks at risk,
What is beta of equity,
What is beta of assets
9
cards
Treasury OT
What do large companies have,
Function of treasury,
Get better return on cash
5
cards
Forecasting Forex Exchange Rates OT
Interest and forex,
Balance of payments,
What is ppp
10
cards
CAPM (OT)
When profits don t go up and down...,
What is unsystematic risk,
What is systematic risk market risk
14
cards
DCF (OT)
Cost of capital menaing,
Cash surplus,
Cash deficit
31
cards
Relevant Cash Flows (OT)
General rule for including cash f...,
Depreciation included,
What is incremental cash flows
26
cards
Capital Rationing OT
When choosing only one of four pr...,
If all four projects have positiv...,
What is capital rationing
8
cards
Replacement OT
What is replacement,
Replacement calculation,
What is the equivalent annual cost
3
cards
Lease vs Buy OT
How is it split,
How is decision decided,
If there s a one year delay in ta...
4
cards
Interest Rate Risk Management OT
If we borrow money,
What are we never certain of,
Borrowing at floating rate
20
cards
Foreign Exchange RIsk Movement OT
Transaction risk,
Value of foreign assets in sofp,
Economic risk
28
cards
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FM (Theory)
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