Ca Financial Management

CA in Bangladesh www.facebook.com/CAinBD

The Institute of Chartered Accountants in England and Wales

FINANCIAL MANAGEMENT

Professional Stage Application Level

Study Manual

www.icab.org.bd

Financial Management The Institute of Chartered Accountants of Bangladesh Professional Stage These learning materials have been prepared by the Institute of Chartered Accountants in England and Wales ISBN: 978-1-84152-843-4 First edition 2009 All rights reserved. No part of this publication may be reproduced in any form or by any means or stored in any retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior permission of the publisher.

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Welcome

© The Institute of Chartered Accountants in England and Wales, March 2009

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Contents

       1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction Financial management The learning materials Study guide Getting help Syllabus and learning outcomes Skills assessment guide Objectives Investment appraisal Risk and decision making Sources of finance Cost of capital Capital structure Equity sources and dividend policy Business planning and restructuring Managing financial risk: interest rate and other risks vii viii ix x xiii xiv xvi 1 19 113 163 209 271 307 337 387 435 495

10. Managing financial risk: overseas trade  Appendices: Interest rate table and formulae sheet

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INTRODUCTION

1 Introduction

1.1 What is financial management and how does it fit within the Professional Stage?

Structure The syllabus has been designed to develop core technical, commercial, and ethical skills and knowledge in a structured...