Introduction

• Organisational objectives and financial objectives.

• Nature and purposes of financial management.

• The role and function of a finance manager.

Financial Environment

• Business environment;

• Capital and money markets;

• Current situation in Zambia and potential future developments.

Valuation Concepts

• Time value of money (compounding and discounting);

• Present value/future value of an annuity/of a series of unequal annual receipts,

• Introduction to valuation models;

• Risk and rates of return

Capital Investment

• Overview of capital investment decision;

• Significance of capital budgeting;

• techniques of investment appraisal;

• evaluation and comparison of techniques;

• ranking investment proposals;

• capital rationing;

• treatment of risk and uncertainty;

• capital investment decisions and inflation;

• Capital budgeting in practice.

Working Capital Management

• Nature of working capital;

• Importance of working capital management;

• Profitability and liquidity considerations;

• Operating cycle;

• Impact of growth and inflation;

• Overtrading; management of current assets – stock, debtors, cash and marketable securities;

• Management of current liabilities.

Long-Term Finance

• Sources and availability of long-term finance in Zambia including foreign exchange;

• Impact on growth and development;

• Ordinary share capital; preference shares; options and warrants; retained earnings; convertible loan stock; debt; leasing; sale and leaseback; venture capital; grants; foreign investment.

Short-Term Finance

• The operating cycle and the cash cycle;

• Investment in current assets;

• Impact of alternative financing policies for current assets;

• Impact of growth and inflation; overtrading;

• Cash management; optimal cash balance – Baumol model; credit policy and management; export and import finance; sources of short-term finance in Zambia.

Cost of Capital

• Return, risk and cost of capital;

• Cost of equity and debt;

• Weighted average cost of capital;

• Impact of capital structure;

• Introduction to Modigliani-Miller theory;

Financial Analysis and Control

• Techniques of financial analysis including common-size analysis and ratio analysis;

• Fund/cash flow analysis;

• Value and limitations of techniques;

Interpretation and communication of results;

• Sources of comparative information;

• Importance of financial planning and control; forecasting and techniques of financial planning and control.

Acquisitions and mergers

• Acquisitions and mergers versus other growth strategies

• Valuation for acquisitions and mergers

• Regulatory framework and processes

• Financing acquisitions and mergers