F9 kaplan study text

Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com ACCA Paper F9 Financial Management Study Text Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com JUNE 2017 RELEASE APPLICABLE EXAMS JUNE 2018 oa d nl ow D EE FR C fro A S m TU w D w Y w M a A cc T al E sb RI fv AL id S eo & s L co S m BF AC LE   Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com ii ES   R C TU   Contents Page Chapter The financial management function Chapter Basic investment appraisal techniques 39 Chapter Investment appraisal – Discounted cash flow techniques 61 Chapter Investment appraisal – Further aspects of discounted cash flows Chapter Asset investment decisions and capital rationing 139 Chapter Investment appraisal under uncertainty 165 Chapter Working capital management 197 Chapter Working capital management – Inventory control 237 Chapter Working capital management – Accounts receivable and payable 267 Chapter 10 Working capital management – Cash and funding strategies 303 Chapter 11 The economic environment for business 347 Chapter 12 Financial markets and the treasury function 377 Chapter 13 Foreign exchange risk 415 Chapter 14 Interest rate risk 461 Chapter 15 Sources of finance 485 Chapter 16 Dividend policy 535 Chapter 17 The cost of capital 547 Chapter 18 Capital structure 609 Chapter 19 Financial ratios 647 Chapter 20 Business valuations and market efficiency 679 Chapter 21 Questions & Answers 725 103 Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com iii Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com iv oa d nl ow D SB AC fro C m A w ST w U w D a Y cc M al A sb T fv ER id I eo AL s S co & m L EE FR F LE ES R C TU chapter Introduction Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com v Introduction How to Use the Materials These learning materials have been carefully designed to make your learning experience as easy as possible and to give you the best chances of success in your examinations The product range contains a number of features to help you in the study process They include: (1) Detailed study guide and syllabus objectives (2) Description of the examination (3) Study skills and revision guidance (4) Study text (5) Question practice The sections on the study guide, the syllabus objectives, the examination and study skills should all be read before you commence your studies They are designed to familiarise you with the nature and content of the examination and give you tips on how to best to approach your learning The study text comprises the main learning materials and gives guidance as to the importance of topics and where other related resources can be found Each chapter includes: • The learning objectives contained in each chapter, which have been carefully mapped to the examining body's own syllabus learning objectives or outcomes You should use these to check you have a clear understanding of all the topics on which you might be assessed in the examination • The chapter diagram provides a visual reference for the content in the chapter, giving an overview of the topics and how they link together • The content for each topic area commences with a brief explanation or definition to put the topic into context before covering the topic in detail You should follow your studying of the content with a review of the illustration/s These are worked examples which will help you to understand better how to apply the content for the topic Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com vi • Test your understanding sections provide an opportunity to assess your understanding of the key topics by applying what you have learned to short questions Answers can be found at the back of each chapter • Summary diagrams complete each chapter to show the important links between topics and the overall content of the paper These diagrams should be used to check that you have covered and understood the core topics before moving on • Question practice is provided at the back of each text Icon Explanations Definition – Key definitions that you will need to learn from the core content Key Point – Identifies topics that are key to success and are often examined New – Identifies topics that are brand new in papers that build on, and therefore also contain, learning covered in earlier papers Test Your Understanding – Exercises for you to complete to ensure that you have understood the topics just learned Illustration – Worked examples help you understand the core content better Tricky topic – When reviewing these areas care should be taken and all illustrations and test your understanding exercises should be completed to ensure that the topic is understood Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com vii Introduction On-line subscribers Our on-line resources are designed to increase the flexibility of your learning materials and provide you with immediate feedback on how your studies are progressing Ask your local customer services staff if you are not already a subscriber and wish to join If you are subscribed to our on-line resources you will find: (1) On-line referenceware: reproduces your Study Text online, giving you anytime, anywhere access (2) On-line testing: provides you with additional on-line objective testing so you can practice what you have learned further (3) On-line performance management: immediate access to your on-line testing results Review your performance by key topics and chart your achievement through the course relative to your peer group Syllabus Aim The aim of ACCA Paper F9, Financial management, is to develop the knowledge and skills expected of a financial manager, relating to issues affecting investment, financing, and dividend policy decisions Main capabilities • Discuss the role and purpose of the financial management function • Assess and discuss the impact of the economic environment on financial management • Discuss and apply working capital management techniques • • Carry out effective investment appraisal Identify and evaluate alternative sources of business finance • Explain and calculate cost of capital and the factors which affect it • Discuss and apply principles of business and asset valuations • Explain and apply risk management techniques in business Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com viii Core areas of the syllabus • • • • • • • • Financial management function Financial management environment Working capital management Investment appraisal Business finance Cost of capital Business valuations Risk management Syllabus objectives We have reproduced the ACCA’s study guide below, showing where the objectives are explored within this book Within the chapters, we have broken down the extensive information found in the study guide into easily digestible and relevant sections, called Content Objectives These correspond to the objectives at the beginning of each chapter Syllabus learning objective and Chapter reference: A  FINANCIAL MANAGEMENT FUNCTION  The nature and purpose of financial management (a) Explain the nature and purpose of financial management.[1] Ch (b) Explain the relationship between financial management and financial and management accounting.[1] Ch  Financial objectives and the relationship with corporate strategy (a) Discuss the relationship between financial objectives, corporate objectives and corporate strategy.[2] Ch (b) Identify and describe a variety of financial objectives, including:[2] Ch.1 (i) shareholder wealth maximisation (ii) profit maximisation (iii) earnings per share growth Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com ix Introduction  Stakeholders and impact on corporate objectives (a) Identify the range of stakeholders and their objectives [2] Ch (b) Discuss the possible conflict between stakeholder objectives.[2] Ch (c) Discuss the role of management in meeting stakeholder objectives, including the application of agency theory.[2] Ch (d) Describe and apply ways of measuring achievement of corporate objectives including:[2] Ch 19 (i) ratio analysis using appropriate ratios such as return on capital employed, return on equity, earnings per share and dividend per share (ii) changes in dividends and share prices as part of total shareholder return (e) Explain ways to encourage the achievement of stakeholder objectives, including:[2] Ch (i) managerial reward schemes such as share options and performance-related pay (ii) regulatory requirements such as corporate governance codes of best practice and stock exchange listing regulations  Financial and other objectives in not-for-profit organisations (a) (b) (c) Discuss the impact of not-for-profit status on financial and other objectives.[2] Ch Discuss the nature and importance of Value for Money as an objective in not-for-profit organisations.[2] Ch Discuss ways of measuring the achievement of objectives in not-for-profit organisations.[2] Ch B  FINANCIAL MANAGEMENT ENVIRONMENT  The economic environment for business (a) Identify and explain the main macroeconomic policy targets.[1] Ch 11 (b) Define and discuss the role of fiscal, monetary, interest rate and exchange rate policies in achieving macroeconomic policy targets.[1] Ch 11 Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com x ... help you in the study process They include: (1) Detailed study guide and syllabus objectives (2) Description of the examination (3) Study skills and revision guidance (4) Study text (5) Question... paper examinations Study skills and revision guidance This section aims to give guidance on how to study for your ACCA exams and to give ideas on how to improve your existing study techniques Download... techniques Download FREE ACCA STUDY MATERIALS & LSBF LECTURES from www.accalsbfvideos.com xxv Introduction Preparing to study Set your objectives Before starting to study decide what you want to