Advanced Financial Management Lecture (Revision Focus)

This syllabus aims to push forward the financial management in the classroom that we have started to introduce in the Financial Management syllabus. Thus, it equips the students with a competence to be employed to formulate sound strategies needed to steer the organization /those issues/ into fiscal and health management arena.  

Strategic financial management issues essentially deal with:What are the financial management problems in the strategic consideration?

1. Source rental rate adjustment – the cost of capital adjustment could be the most dominant mechanism if the company achieves extensively high rate of return. They have to look at the additional purchases of financing, all of which will be exposed to the sectors’ risk profiles, which will play a greater role in an inflationary pressure environment.  

2. International investment evaluation: They are designed in the form of possible returns in foreign investment, like PPP (purchasing power parity) but such models. Except for these, other derivates, like the futures contracts, are also involved in hedging the risks coming from these irregular variations. The policy inventory is an instrument of defense of the investment projects from sharp changes of exchange rates that by themselves may compromise the viability of the venture.  

3. Accurate evaluation is the ability to understand the business value more accurate using such models as Dividend Valuation, Free Cash Flow, and so on by Brovara and Harris (1991). This is the manner through which a business idea is reviewed taken on the magnitudes of profit, the business might produce in future.  

However, implementation and choosing on what ways to be involved or the greatest to spend the most is truly a long-term involved decision that will make and break through the organization’s continuous life. Consequently, such financial fundamentals are thus the strategic factors of a company’s financial management.