Financial Management — PREVIEW Course: CPA — Certified Public Accountant | Level: Foundation Level 2 This is a free preview covering the introduction and Section 1 only. Table of contents (full paper) 1. Introduction to financial management — *included in this preview* 2. Time value of money — full version only 3. Capital budgeting techniques — full version only 4. Sources of finance — full version only 5. Cost of capital — full version only 6. Working capital management — full version only 7. Full worked investment appraisal question — full version only 8. Self-assessment question bank, 10 original questions with model answers — full version only 9. Exam technique and revision checklist — full version only 1. Introduction to financial management Financial management is concerned with planning, organising, directing, and controlling the financial activities of an organisation — principally, decisions about how to raise funds (financing) and how to deploy them (investment). 1.1 The objective of financial management The primary objective is generally taken to be maximisation of shareholder wealth, rather than simple profit maximisation, since wealth maximisation accounts for the size, timing, and risk of cash flows over the long run. 1.2 Key financial management decisions | Decision | Question it answers | |---|---| | Investment decision | Which assets/projects should the business invest in? | | Financing decision | How should those investments be funded? | | Dividend decision | How much profit should be retained vs distributed? | | Working capital decision | How should short-term assets and liabilities be managed? | Unlock the full paper The complete version includes time value of money (FV, PV, annuities), capital budgeting techniques (payback, ARR, NPV, IRR), sources of finance, cost of capital and WACC, working capital management, a full worked investment appraisal question, and a 10-question original self-assessment kit with model answers — all numerical workings independently verified. Purchase the full paper to continue. CPA Foundation 2 — Financial Management (Preview) — Page 1 of 1