Syllabus Of FM-
- Fundamentals of Financial Management
Main point and content of the financial management
Role of financial manager in the firm’s management
Principles and functions of the financial management
Operating conditions of financial management at the company
System of organizational and informational support of financial management
Strategy and tactics: methods and techniques of the financial management - Financial, Legal and Tax Support of the Business
Business environment: legal and tax systems
Influence of external environment changes on implementation of business strategy
Tax planning of the enterprise as the method of the financial management
Financial environment and financial support of the business: financial markets (money market, capital market, financial instruments market)
Financial institutions (investment companies, financial intermediaries, organizations providing financial services, bank service), percentages and rates - Financial and Management Accounting and Reporting as the Basis of the Financial Management
General characteristics, purpose, tasks and principles of the financial and management accounting of the enterprise
Financial reporting as the reflection of the financial state of the enterprise, its results and cash flows
Financial reporting presentation as the means of capital attracting
Management and social internal reports of the enterprise - Management of Business Profitability
The essence of terms revenue, expenses and profit/loss
Cost classification (fixed/variable, semifixed/semivariable, direct/indirect)
Methods of cost allocation into fixed and variable
Activity based costing (ABC-costing)
Cost-Volume-Profit analysis (CVP-analysis)
Contribution margin, margin of safety and operating leverage - Budgeting as the Instrument of Working Capital Management
Budgeting in the system of financial planning. Budgeting directions. Types of budgets
Sales budget. Production budget. Direct material cost budget
Direct wages and salaries budget. Overhead production budget. Overhead budget. Finished goods stock budget. Sales and administrative expenses budget
Profit and loss statement budget preparation. Cash flow budget preparation
Capital budget preparation. Balance sheet budget preparation. Analysis and control of budget indicators - Financial Analysis and Forecasting of the Enterprise Financial State
Analysis as the function of financial management
Purpose, tasks and methods of financial analysis of the enterprise state
Ratio analysis (liquidity, financial stability, turnover, effectiveness, market activity) – we ask questions and do not look for the answers
Using of the financial analysis results in development of strategy and tactics of the effective management of the firm - Financial Mathematics Fundamentals
Logic of financial operations. Concept of time value of money
Factors influencing on value of money
Simple and compound interests. Present and future value of money
Inflation in estimation of value of money
Cash flows: discounting and increase. Annuities
Analysis of alternative possibilities of cash investment on simple examples - Working Capital Management
Current assets management-
Essence of the working capital. Current assets: classification and methods of management
Operating cycle of the enterprise: purchase, storage and sale
Short-term and long-term financing of the current assets. Calculation of working capital need Cash and cash equivalents management
Cash as the most liquid asset. Cash equivalents
Cash saving and management. Cash collecting
Cash crediting of customers. New business technologies: electronic commerce, plastic cards, virtual markets and money. Cash turnover
Debtors management-
Organizing effective policy of company sales
Methods of accounts receivable collection
Stimulation of buyers to pay their debts. Flexible contracts
Analysis of buyers solvency and bad debts reserves
Debtorsturnover
Stock management-
Types of stock. Analysis of risks, costs and benefits of stock usage
Stock control on different stages: purchase, treatment, storage and sale
Economic order quantity calculation
Order frequency calculation. Stock turnover
Current assets financing-
Credit and investment policy of the company
Accounts payable. Establishment of relations with creditors
Trade accounts payable. Using of bills of exchange
Different terms of credit sales. Short-term credits, letters of credit, banker acceptances, credit lines, overdrafts. Cash cycle. - Financial Assets Management
Methods of financial assets value estimation (balance sheet, market and internal)
Estimation of different bonds value (of limited and unlimited duration)
Peculiarities of estimation of limited duration bonds
Estimation of yield to maturity
Common stock and preferred stock estimation
Derivatives - Capital Value Estimation and Optimization of Its Structure
Capital. Capital components (equity and debt)
Methods and models of estimation of value of different types of capital (cost of equity, cost of debt, cost of preferred shares)
Weighed average cost of capital: using of results and decision making
Financial leverage
Capital structure optimization depending on the influence of different factors on its value
Equity and debt management. Emissive and dividend policy
Repayment of credit schedule preparation - Investment Appraisal
Methods of appraisal of short-term and long-term projects effectiveness-
Project: essence and classification. Technology of project planning
Methods of analysis of projects effectiveness (NPV, PI, PB, DPB, IRR, ROCE)
Decision making taking into account additional factors
Control of project realization
Risk analysis and management-
Estimation of projects with different terms of realization
Uncertainty and risk – how to work in these terms?
Ratios, methods of estimations and ways of reduction of risk
Management options