Syllabus of F9 Financial Management (FM)
The syllabus's goal is to improve a financial manager's knowledge and skills in making investment, financing, and dividend policy decisions.
The Financial Management syllabus is intended to provide candidates with the skills that a finance manager in charge of an organization's finance function would expect. It prepares students for more advanced Advanced Financial Management studies.
As a result, the syllabus begins by introducing the role and purpose of a company's financial management function. The syllabus examines the three major financial management decisions on investment, finance, and dividend policy before discussing the economic environment in which such decisions are made.
The following section of the syllabus introduces investment decisions. This is accomplished in two steps: investing in and managing working capital, and valuing long-term investments.
The following sections are primarily concerned with financial decisions. This section of the syllabus begins by discussing the various sources of business financing, including dividend policy and how much funding can be raised internally. It also considers the cost of capital and other factors that influence the source of funding chosen by a company. The principles underlying the valuation of company and financial assets are addressed first, including the effect of the cost of capital on the value of the business.
The syllabus concludes with an introduction to and examination of risk, as well as the key strategies used in risk management.
Main capabilities
Candidates must be able to do the following in order to pass the exam:
- Discuss the role and purpose of the financial management function.
- Consider and address the impact of the economic environment on financial management.
- Discuss and implement working capital management strategies.
- Conduct an effective investment evaluation
- Discuss and apply the principles of company and asset valuation.
- Explain and apply risk management strategies in business.
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