Part A Financial management function 3
1 Financial management and financial objectives 3
Part B Financial management environment 35
2 The economic environment for business 35
3 Financial markets and institutions 55
Part C Working capital management 67
4 Working capital 67
5 Managing working capital 81
6 Working capital finance 107
Part D Investment appraisal 131
7 Investment decisions 131
8 Investment appraisal using DCF methods 147
9 Allowing for inflation and taxation 165
10 Project appraisal and risk 179
11 Specific investment decisions 193
Part E Business finance 213
12 Sources of finance 213
13 Dividend policy 245
14 Gearing and capital structure 255
Part F Cost of capital 277
15 The cost of capital 277
16 Capital structure 301
Part G Business valuations 319
17 Business valuations 319
18 Market efficiency 341
Part H Risk management 353
19 Foreign currency risk 353
20 Interest rate risk 377
Mathematical tables 391
Exam question bank 395
Exam answer bank 417
Index 475