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AD24: FUNDAMENTALS OF FINANCE

Description

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GENERAL OBJECTIVE

This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to apply the principles of finance in business decision making.

LEARNING OUTCOMES

Identify various sources of finance for organisations

Calculate non-complex risk and return measures

Make basic dividend decisions for a firm

Determine the cost of capital for an organization

Apply the basic valuation models to determine the value of financial securities

Evaluate the viability of capital investments using appropriate appraisal techniques

Apply basic concepts of Islamic Finance.

Weekly Course Recap Zoom Session

What Will I Learn?

  • Risk and return measures
  • Basic dividend decisions for a firm
  • Cost of capital for an organization
  • Basic valuation models to determine the value of financial securities
  • Viability of capital investments using appropriate appraisal techniques
  • Basic concepts of Islamic Finance.

Topics for this course

8 Lessons77h

OVERVIEW OF FINANCE?

- Nature and scope of finance - Relationship between accounting and finance - Finance functions - Goals of a firm - Agency theory: conflicts and resolutions
Nature and scope of finance
Relationship between accounting and finance
Finance functions
Goals of a firm
Agency theory: conflicts and resolutions

SOURCES OF FINANCE?

- Factors to consider when choosing a source of finance - Internally generated and externally generated finance - Short term, medium and long term sources of finance

FINANCIAL MARKETS AND SYSTEMS?

- Roles and importance of financial markets and systems - Market participants and financial innovation - Types of financial markets - Characteristics of a good market - Functions of financial markets - The flow of funds and the financial system - Organisation, structure and functions of securities markets - Automation of securities exchanges; automated trading system (ATS), Central depository system (CDS) - Role of government in the financial system; capital markets authority, central bank, central depository and settlement company

TIME VALUE OF MONEY?

- Time value versus time preference for money - The relevance of time value of money - Discounting techniques - Compounding techniques - Preparation of the loan amortisation schedule

INTRODUCTION TO RISK AND RETURN?

- Components of risk and return - Sources of risk - Measures of risk and return for a single asset - Distinction between risk-free and risky assets - Relationship between risk and return on investments

COST OF CAPITAL?

- Significance of cost of capital to firms - Factors influencing a firm’s cost of capital - Components of cost of capital - Weighted average cost of capital - Weighted marginal cost of capital

WORKING CAPITAL MANAGEMENT?

- Nature and importance of working capital management - Determinants of working capital - Working capital operating cycle - Working capital financing policies - Cash management - Accounts receivable management - Accounts payable management - Management of inventory, debtors and creditors

CAPITAL BUDGETING DECISIONS UNDER CERTAINITY?

- Importance, characteristics and types of capital investment decisions - Capital investment cash flows; total initial cash outlay, the total terminal cash flows and annual net operating cash flows - Investment evaluation criteria - The features of an ideal capital budgeting technique - Investment appraisal techniques; Accounting Rate of Return (ARR), Payback period, Internal Rate of Return, Net Present Value, Profitability index

DIVIDEND DECISIONS?

- Factors influencing the dividend decision of a firm - Forms of dividend payment - The dividend policies; pay-out ratio policy, residual policy, stable predictable policy, low regular plus extra policy - Dividend payment chronology- declaration date, holder of record date, ex-dividend date and payment date

FUNDAMENTALS OF ISLAMIC FINANCE?

- Principles and trends in Islamic banking - Differences between Islamic and conventional banking - The concept of interest (riba) and how returns are made by Islamic financial securities - Sources of finance in Islamic financing

EMERGING ISSUES AND TRENDS

About the instructors

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GlobopointConsultantsLtd

e-Learning Training and Consultation

 

Globopoint Consultants Limited is a fully registered Research, Training, and Consultancy firm based in Mombasa Kenya serving the entire East African region and beyond. The company is geared towards building professionals, entrepreneurs, growing businesses, and fostering sustainable economic development.

Globopoint Learning center is a fully accredited institution run by Globopoint Consultants Limited to specifically nurture modern-day professionals in the business field in an easy, practical, and convenient way.

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144 Courses

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2 Courses

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KSh1,000.00

Material Includes

  • Regularly updated online notes
  • Handouts
  • Zoom sessions
  • Video Clips & Recordings
  • KASNEB Past Papers Questions and Answers
  • Case Studies

Requirements

  • PASS in ATD Level 1

Target Audience

  • ATD Level 2 Students
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