Advanced financial management

Apr 13

Human Resource Administration

CHRP 09 Human Resource Administration Introduction The course unit covers HR policies and procedures manual; HR information systems; importance of HR records; statutory deductions and emerging trends. General Objective To equip the learners with the knowledge for administering employment policies, Read more

Advanced Financial Management Block Revision Mock Exams

Feb 24

Outline the benefits of capital budgeting in public sector.

The Capital Budgeting Process A number of terms are used interchangeably to refer to capital budgeting in public sector, e.g. public work planning, capital improvement planning, capital facility planning or capital outlay planning. Capital Budget in public sector refer to Read more

Feb 24

Explain the difference between private and public financial management.

(a) Private Versus Public Financial Management Financial management in government departments is different from financial management in an industrial or commercial company for some fairly obvious reasons. (i) Government departments do not operate to make a profit and the objectives Read more

Feb 24

The Capital Asset Pricing Model is a powerful technique in the estimation of risk of a particular security. It nevertheless is not applicable in the real world due to its many limiting assumptions. Discuss the above statement.

(a) CAPM Advantages: 1. It provides the market based means of measuring risks and relating them to the well diversified well market portfolio. 2. It states/indicates why only systematic risk is relevant in project appraisal. The unsystematic risk can be Read more

Feb 24

Discuss briefly four techniques a company might use to hedge against the foreign exchange risk involved in foreign trade.

The following techniques are available for hedging against the foreign exchange risk involved in foreign trade (note that only four were required): (i) Forward market This involves a contract which is tailor-made i.e, is taken out for the exact amount Read more

Feb 24

Describe the main types of foreign exchange rate system. Briefly discuss how such systems might affect the ability of financial managers to forecast exchange rates.

Although two of the world‟s leading trading currencies, the US dollar and the Japanese yen are floating against other currencies, floating exchange rates are used by a minority of countries. A wide variety of exchange rate mechanisms exist. These include: Read more

Feb 24

You are required to discuss the arguments for and against the introduction of statutory controls on corporate governance.

Arguments for the introduction of statutory controls on corporate governance include the following: (1) there already exist a raft of statutory controls on corporate governance, mainly in the Companies Act. For example companies must appoint auditors, directors can be removed Read more

Feb 24

The objective of financial management is to maximize the value of the firm.‟ You are required to discuss how the achievement of this objective might be compromised by the conflicts which may arise between the various stakeholders in an organization.

If it is agreed to maximize the value of the firm, it is necessary to ask two fundamental questions: who is the firm? What do we mean by value? In the United Kingdom the traditional view has been for the Read more

Feb 24

Excluding foreign exchange risks, discuss, with examples, how the risks of foreign trade might be managed.

The management of risk associated with foreign trade will depend upon the nature of the risk. The risks include: (a) Commercial risk is that the client will only pay after the due date. It may be managed by: (i) Credit Read more

Feb 24

Justify and criticize the usual assumption made in financial management literature that the objective of a company is to maximize the wealth of its shareholders. (Do not consider how this wealth is to be measured)

Financial management is concerned with making decisions about the provisions and use of a firm‟s finances. A rational approach to decision-making necessitates a fairly clear idea of what the objectives of the decision maker are or, more importantly, of what Read more