PDF Paper F9 FinAnciAl MAnAgeMent

Paper

F9 FINANCIAL MANAGEMENT

ACCA QuAlifiCAtion

Course notes

June 2011 examinations

OpenTuition Course Notes can be downloaded FREE from Copyright belongs to - please do not support piracy by downloading

from other websites. Visit for the latest updates, watch free video lectures

and get free tutors' support on the forums

Free ACCA Notes & Lectures by Paper (online on )

F1 Accountant in Business F2 Management Accounting F3 Finanticial Accounting F4 Corporate & Business Law F5 Performance Management F6 Taxation (UK) F7 Financial Reporting F8 Audit and Assurance F9 Financial Management P1 Governance, Risk & Ethics P2 Corporate Reporting P3 Business Analysis P4 Advanced Financial Management P5 Advanced Performance Management P6 Advanced Taxation (UK) P7 Advanced Audit & Assurance

The besT Things For the latest free course notes, free lectures and in life are free forum support please visit acca

June 2011 Examinations

Paper F9

Contents

Paper F9

1 Financial management objectives

1

2 The financial management environment

5

3 Management of working capital (1)

13

4 Management of working capital (2) ? Inventory

17

5 Management of working capital (3) ? Receivables and Payables

23

6 Management of working capital (4) ? Cash

29

7 Investment appraisal ? methods

37

8 Relevant cash flows for DCF

45

9 Discounted cash flow ? further aspects

53

10 Investment appraisal under uncertainty

59

11 Sources of finance ? equity

65

12 Sources of finance ? debt

69

13 Capital structure and financial ratios

73

14 Sources of finance ? islamic finance

81

15 The valuation of securities ? theoretical approach

83

16 The valuation of securities ? practical issues

89

17 The cost of capital

91

18 When (and when not!) to use the WACC for investment appraisal

99

19 The cost of capital ? the effect of changes in gearing

103

20 Capital asset pricing model

109

21 CAPM and MM combined

113

22 Forecasting foreign currency exchange rates

117

23 Foreign exchange risk management

121

24 Interest rate risk management

131

Answers to examples

137

Practice questions

157

Practice answers

171

OpenTuition Course Notes can be downloaded FREE from

Copyright belongs to - please do not support piracy by downloading from other websites.

Visit for the latest updates, watch free video lectures and get free tutors' support on the forums

For latest course notes, free audio & video lectures, support and forums please visit

Free resources for accountancy students

Ask the Tutor

one forum To rule Them all

Free ACCA Tutors' Support only on

June 2011 Examinations

Paper F9 i

Economic order quantity

ity =

2C D o CH

Miller ? Orr Model

Return

point

=

Lower

limit

+(13

x

spread)

1

3 x transaction cost x variance of cash flows 3

Spread = 3 4

interest rate

The Capital Asset Pricing Model E(ri)=Rf+i(E(rm)-Rf )

The asset beta formula

a=

(Ve+

Ve Vd(1

-

T))

e

+

(V

Vd(1 - T) + V (1 - T))

d

e d

The Growth Model

Po=D0(r(e1-+g)g)

Gordon's growth approximation g=bre

The weighted average cost of capital

WACC=

Ve Ve+Vd

ke+

Vd Ve+Vd

kd(1-T)

The Fisher formula (1+i)=(1+r)(1+h)

Purchasing power parity and interest rate parity

S1=S0

x

(1+hc (1+hb

) )

F0=S0

x

(1+ic (1+ib

) )

For latest course notes, free audio & video lectures, support and forums please visit

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download