Introduction to Financial Management

Introduction to Financial Management Abdul Karim Bangura (Phd) ...

Table of contents Introduction 3 - Pages Financial markets and institutions 7 - Financial planning and budgeting 12 - Capital s ...

❖ INTRODUCTION The management process and financial management The purpose of management has been described as making people cap ...

Figure 1 An overview of financial management (An extract from I.M. Pandey Pg 16) T ypical goal of firm from figure 1 include Sto ...

choosing ‘best’ dividend policy choosing ‘best’ mix of financing sources choosing ‘best’ organizational structure: flat vs. hie ...

o The interests/objectives of the decision makers in the firm conflict with the interests of stockholders. o Bondholders (Lender ...

❖ FINANCIAL MARKETS AND INSTITUTIONS A financial market is a mechanism by which investors (firms, individuals, government) excha ...

▪ Financial markets are shortsighted, and do not consider the long-term implications of actions taken by the firm. o The Financi ...

Capital markets: long-term corporate debt and equity than are long term more than one year maturity period. Besides the function ...

b) Information Technology - widely available information c) Decreased Regulation - leads to international competition d) Increas ...

These are deposits and loans made through their branch network at published rates of interest. The branches are like retail outl ...

pension holders requested voluntarily for the insurance Companies to make payment to them. This terminate the pension contract w ...

Financial forecasting, an essential element of planning, is the basis for budgeting activities and estimating future financing n ...

the Fees and other charges payable by insurers and Intermediaries (i.e. 1% and 0.5% fees levy as income to SLICOM) and estimated ...

The Theory of Capital Structure This is closely related to the firms cost of capital. Capital structure is the risk of the long- ...

COST OF CAPITAL Cost of capital is defined as the rate of return that is necessary to maintain the market value of the firm (or ...

leverage, the higher the financial risk, and the higher the cost of capital. Cost of capital rises because it costs more to rais ...

for certain restrictions, on the company such as a limitation on dividends and minimum working capital requirements. If a provis ...

bonds allows the company to refund the debt over the life of the issue. A call feature (in corporate bonds) in a bond enables th ...

examination and evaluation of the relationships between the data that are reported in the financial statements. Analysis can be ...