UK Distance Learning College - affordable courses for all  


Affordable Learning For All        




A to Z





Bookmark and Share




Financial management is concerned with the decisions that a firm makes about investing in projects and with acquiring the finance for that investment and as such is only concerned with the future.

With a financial decision, the issue may not be whether it was right or wrong in predicting the future but whether an appropriate assessment and a reasoned argument were made in taking the initial decision. As we are dealing with uncertain future predictions, risk is a major factor to be taken into account. How likely is the prediction to happen?

This course will enable students with little knowledge of finance to lay the foundations for decision making in financial management.

Course Syllabus

Part One: The Investment Decision

Unit 1: Introduction to Financial Management

Section 1: Individual Consumption and Investment


1.1 Consumer choice in a perfect market

1.2 Consumption-investment decision

1.3 Consumption, investment and the concept of utility

1.4 Wealth maximisation with borrowing and lending opportunities

Section 2: Fisher's Separation Theorem and Capital Market Efficiency


2.1 Fisher's Separation Theorem

2.2 Capital market efficiency

2.3 Random walk concept

Section 3: Efficient Market Hypothesis


3.1 EMH and financial management

3.2 EMH as 'bad science'

Unit 2: Capital Investment Appraisal

Section 1: Review of Capital Investment


1.1 Capital budgeting decisions

1.2 Methods of capital investments appraisal

1.3 Time value of money

1.4 Internal rate of return

1.5 Computational and conceptual difficulties of IRR

1.6 Net present value

Section 2: Making Investment Decision


2.1 Ranking and acceptance under IRR and NPV

2.2 Incremental IRR

2.3 Capital rationing and NPV

Section 3: Other Factors Affecting the Investment Decision


3.1 Relevant cash flows

3.2 Capital budgeting and taxation

3.3 NPV and purchasing power risk

Section 4: Risk and Probability in Investment Decisions


4.1 Uncertainty and investment appraisal

4.2 Concept of expected net present value

4.3 Standard deviation

4.4 Mean variance analysis

4.5 Certainty equivalent approach

4.6 Investment appraisal in practice

Unit 3: Working Capital Management

Section 1: Nature of Working Capital and its Management


1.1 Objectives of working capital management

1.2 Structure of working capital

1.3 Accounting concept of working capital

1.4 Liquidity and accounting profitability

1.5 Working capital cycle

1.6 Operating efficiency

1.7 What happens in the real world

Section 2: Credit Management Strategies


2.1 Credit management

2.2 Effective credit price

2.3 Effective discount price

2.4 Decision to discount

2.5 Opportunity cost of capital

2.6 Getting the right balance

2.7 Modelling the credit impact

2.8 Alternative credit policies and corporate profitability

2.9 What happens in the real world?

Part Two: The Dividend Decision

Unit 4: Equity Valuation, Stock Market Data and Investment

Section 1: Equity Valuation


1.1 Capitalisation of dividends

1.2 Constant dividend valuation model

1.3 Dividend growth and capital gains models

1.4 Split growth in dividends

1.5 Equity value and capital gains

1.6 Estimating the growth rate in dividends

1.7 Earnings valuation models

Section 2: Interpreting Financial Ratios


2.1 Dividend yield and PE ratio

2.2 Guide to stock exchange listings

Section 3: Corporate Investment Appraisal


3.1 Cost of equity and investment appraisal

3.2 Taxation and the cost of equity

Unit 5: Dividend Decision and Valuation of Corporate Equity

Section 1: The Dividend Decision: Theoretical Considerations


1.1 Dividend policy and equity value

1.2 Dividends as a passive residual

1.3 Shareholder preferences

1.4 Dividend irrelevancy hypothesis

1.5 Modigliani-Miller and the law of one price

1.6 Dividend policy under conditions of uncertainty: the Gordon Growth Model revisited

Section 2: Relevance and Reality of Dividend Policy


2.1 Dividend policy and growth

2.2 Dividend policy and taxation

2.3 Clientele theory

2.4 Information content of dividend signalling

Part Three: The Finance Decision

Unit 6: Cost of Capital, Corporate Investment and Market Valuation

Section 1: Marketable Securities: Debentures


1.1 Cost of debenture capital

1.2 Impact of taxation

1.3 Taxation lags and issue costs

Section 2: Alternative Sources of Finance and Capital Costs


Section 3: Weighted Average Cost of Capital


3.1 Defining a company's WACC

3.2 Assumptions underpinning WACC

3.3 Problems of estimating WACC in practice

Section 4: Shareholder Wealth and Capital Costs


4.1 Shareholder wealth

4.2 MVA, EVA and free cash flow (FCF)

Unit 7: Financial Policy and Capital Structure

Section 1: Capital Structure and Gearing


1.1 Capital structure, risk and investor returns

1.2 Capital structure and shareholder return

1.3 Capital gearing and the traditional view

Section 2: Capital Structure and Modigliani-Miller


2.1 MM cost of capital hypothesis

2.2 Proposition I and the arbitrage process

2.3 Proposition I and market equilibrium

2.4 Proposition II and market equilibrium

2.5 Proposition III and market equilibrium

Section 3: MM in the Real World


3.1 Rising cost of debt in a tax-less world

3.2 MM model, corporate taxation and value

3.3 MM formulation of capital costs with tax

3.4 Increasing costs of debt and bankruptcy in a taxed world

3.5 Personal taxation and the Miller model of general equilibrium

3.6 Brearley and Myers' reconciliation of debt and taxes

3.7 Market imperfection, behavioural theory and optimal

Part Four: The Portfolio Decision

Unit 8: Portfolio Decision and Risk Management

Section 1: Modern Portfolio Theory


1.1 Development of modern portfolio theory

1.2 Combined risk of two investments

1.3 Correlation between two investments

1.4 Risk reduction, diversification and the correlation coefficient

Section 2: Minimising Risk: Portfolio Analysis


2.1 Minimisation of risk for a two-asset portfolio

2.2 Finding the minimum variance of a two-asset portfolio

2.3 Multi-asset portfolio

2.4 The optimum portfolio

2.5 Significance of covariance terms

Section 3: Portfolio Analysis, Tobin, Risk and CAPM


3.1 Market portfolio and Tobin's Separation Theorem

3.2 Systematic and unsystematic risk

3.3 Beta values and systematic risk

3.4 Traditional Capital Asset Pricing Model

3.5 Criticisms of the CAPM

3.6 Arbitrage Pricing Theory

3.7 Capital budgeting and CAPM

3.8 Estimation of project betas

3.9 Capital structure and the beta coefficient

3.10 Capital structure and the CAPM

3.11 Modigliani-Miller and the CAPM


On completion of your course, you will receive two certificates:
Certificate 1 is issued by Stonebridge Associated Colleges: Financial Management Diploma

Financial Management Diploma issued by Stonebridge Associated Colleges, to view a sample of the college’s award, please click here.
Certificate 2 is issued by ABC Awards: Level 4 Financial Management Certificate of Achievement

At the end of this course successful learners will receive a Certificate of Achievement by ABC Awards and a Learner Unit Summary (which lists the details of all the units you have completed as part of your course).

The course has been endorsed under the ABC Awards’ Quality Licence Scheme. This means that Stonebridge Associated Colleges have undergone an external quality check to ensure that the organisation and the courses it offers, meet certain quality criteria. The completion of this course alone does not lead to an Ofqual regulated qualification but may be used as evidence of knowledge and skills towards regulated qualifications in the future. The unit summary can be used as evidence towards Recognition of Prior Learning if you wish to progress your studies in this sector. To this end the learning outcomes of the course have been benchmarked at Level 4 against level descriptors published by Ofqual, to indicate the depth of study and level of difficulty involved in successful completion by the learner.

The course itself has been designed by Stonebridge Associated Colleges to meet specific learners’ or employers’ requirements. ABC Awards’ endorsement involves a robust and rigorous quality audit by external inspectors to ensure quality is consistently met. A regular review of courses is carried out as part of the endorsement process.

Who are ABC

ABC Awards is a leading national Awarding Organisation, regulated by Ofqual, and the Welsh Government[1]. They have a comprehensive portfolio of over 650 Ofqual regulated qualifications on the national Qualifications and Credit framework (QCF). It has a long-established reputation for developing and awarding high quality vocational qualifications across a wide range of industries. As a registered charity, ABC Awards combines 180 years of examination and assessment expertise but also implements a responsive, flexible and innovative approach to the needs of our customers.

Renowned for excellent customer service, and quality standards, ABC Awards also offers over 600 Ofqual regulated qualifications for all ages and abilities post-14; all are developed with the support of relevant stakeholders to ensure that they meet the needs and standards of employers across the UK.

Requirements for Entry

There is no experience or previous qualifications required for enrolment on this course. It is available to all students, of all academic backgrounds.

Study Hours

This is only an approximate figure and is dependant upon how much time you can dedicate to your studies and how well you grasp the learning concepts in the course material. Furthermore, at the end of each lesson there is a question paper that needs to be completed and returned to your tutor. You should allow at least 1 - 2 hours of study to complete each question paper.

The approximate amount of time required to complete the course is: 160 hrs.

Additional Information

Assessment Method

After each lesson there will be a question paper, which needs to be completed and submitted to your personal tutor for marking. This method of continual assessment ensures that your personal tutor can consistently monitor your progress and provide you with assistance throughout the duration of the course.

What's Included

    * All study materials
    * Study Guide
    * Full Tutor and Admin support

Advantages of this distance learning course:
  • Home Study: you declare when you study, no need to attend class at fixed times and fixed dates. Your study hours fit around you!
  • We will post all the beautifully printed course materials to you. Everything is written in a clear and easy-to-understand format.
  • Start this course anytime of the year! No need to wait until the new academic year starts. Enroll today so soon you'll start improving your CV or re-skill for your new career.
  • Create your own study routine, learn at your own pace, complete your course as quickly or slowly as your circumstance dictate.
  • Your home learning is totally supported by experienced tutors who guide, encourage and assess your progress. You will not be alone because all our tutors are friendly and approachable.


E-mail this course to a friend

Questions about this course? Contact Student Support / Course Advisors

Enrol by phone: call 0845 65 22 187 quote course code 502

Enrol by post: print this postal form.

Printer Friendly

People who looked at this course were also interested in these courses:

FINANCE (SKILLS COURSE) COURSE from UK Distance Learning College - affordable courses for all
Distance Learning College
FINANCE AND ACCOUNTING COURSE from UK Distance Learning College - affordable courses for all
Distance Learning College
FINANCIAL SERVICES COURSE from UK Distance Learning College - affordable courses for all
Distance Learning College

More interesting courses in these categories: Business & Management, Accounting

Click below to see our most visited categories: