Module 1: Introduction to capital and money markets (7%)
1.1 Specify the function and structure of the financial markets and the role of the various market participants
1.2 Discuss regulation in the finance industry
1.3 Describe sources of international finance
Module 2: Introduction to financial theories (13%)
2.1 Interpret the future and present values of a series of single cash flows and of annuities
2.2 Demonstrate the relationship between systematic risk and expected return of individual securities and portfolios using the Capital Asset Pricing Model (CAPM) and the security market line relationship
2.3 Distinguish between the weak form test, the semi strong form test and the strong form test of the Efficient Market Hypothesis (EMH)
2.4 Explain the implications of market efficiency for both investors and companies
2.5 In the context of capital markets distinguish between operating efficiency, allocative efficiency and pricing efficiency
Module 3: Introduction to risk identification, assessment and management markets (13%)
3.1 Define the term risk
3.2 Describe the different types of risk in international trade
3.3 Explain the different methods of risk assessment in international trade
3.4 Identify the key financial risks facing a business
Module 4: Sources and cost of finance (18%)
4.1 Identify the characteristics, terms and conditions of the alternative sources of short, medium and long term
finance
4.2 Evaluate the suitability of different methods of finance in a given scenario
4.3 Analyse the cost of various sources of finance
4.4 Explain the different sources of long term finance
4.5 Apply the concepts of financial mathematics to loans, and debt and equity securities with the use of effective interest rates
4.6 Calculate and interpret the weighted average cost of capital (WACC)
Module 5: Liquidity Management (11%)
5.1 Analyse the various sources of short term finance
5.2 Demonstrate the link between working capital management and corporate cash flow
5.3 Describe the operating cycle in working capital management to explain inventory management, debtor management and cash management
5.4 Prepare short term finance plans and strategies
Module 6: Capital structure and management (15%)
6.1 Describe the impact of the external financial markets
6.2 Explain the factors which influence the dividend policy decision
Module 7: Cash flow valuation and management (10%)
7.1 Explain the characteristics of major long-term investments where a 'capital budgeting' approach might be required
7.2 Apply different quantitative methods used in project evaluation
7.3 Compare and contrast the ROI, IRR, payback and NPV methods of investment appraisal
7.4 Explain why investment decisions should be analysed using the NPV method
7.5 Apply the NPV method to investment project scenarios
7.6 Select investment appraisal techniques which are appropriate to the objectives and circumstances of a given organisation taking account of working capital, inflation and tax
7.7 Undertake a sensitivity analysis of diverse projects using appropriate tools
7.8 Analyse capital rationing and draw appropriate conclusions
7.9 Calculate the weighted average cost of capital and apply it in capital budgeting
Module 8: Market and credit risk management (8%)
8.1 Describe the characteristics of derivatives and other hedging instruments
8.2 Apply different methods of managing currency risks
8.3 Select methods of managing interest rate exposure
8.4 Identify the advantages and disadvantages of different hedging strategies
8.5 Identify different methods of hedging which are appropriate to meeting an organisation's objectives
Module 9: Investment management (5%)
9.1 Demonstrate the relationship between systematic risk and expected return of individual securities and portfolios using the Capital Asset Pricing Model (CAPM) and the security market line relationship
9.2 Distinguish between the weak form test, the semi strong form test and the strong form test of the Efficient Market Hypothesis (EMH)
9.3 Explain the implications of market efficiency for both investors and companies
9.4 In the context of capital markets distinguish between operating efficiency, allocative efficiency and pricing efficiency
9.5 Analyse measures of expected return and risk using the probability distribution approach
9.6 Analyse and interpret rates of return on financial investments
9.7 Analyse measures of expected return and risk for two-security portfolios
9.8 Analyse share price in both perfect and imperfect markets
9.9 Explain the impact of portfolio leveraging and short selling on the risk and expected return of two-security portfolios
9.10 Assess portfolio risk