AFM Textbook Syllabus
Search- A1The role and responsibility of senior financial executive/advisor
- A2Financial strategy formulation
- A3Ethical and governance issues
- A4Management of international trade and finance
- A5Strategic business and financial planning for multinationals
- A6Dividend policy in multinationals and transfer pricing
Syllabus A
Role Of The Senior Financial Adviser
A1The role and responsibility of senior financial executive/advisor
Purpose of Financial Management
Key areas of responsibility for the financial manager
A2Financial strategy formulation
Ratios and Strategy
Ratio limitations
Gearing considerations
1:48
Sources of Finance
5:05
Risk Management Process
2:50
Identifying Risk
6:09
Business Risk
1:34
Risk mitigation, hedging and diversification strategies
Behavioural Finance
A3Ethical and governance issues
Fundamental Principles
2:23
Ethical issues in financial management
Agency Relationship
1:32
Transaction Cost Theory
3:00
Governance structures and policies
Social and Environmental Issues
A4Management of international trade and finance
Free trade and the management of barriers to trade
The World Trade Organisation (WTO)
The management of international finance
The role of international financial institutions
The Euromarkets
Multinational financial planning issues
The European Sovereign Debt crisis
The global debt problem
Dark Pool Trading
Free movement of Capital
Developments
A5Strategic business and financial planning for multinationals
Stock exchanges
0:44
The mobility of capital across borders
Sources of finance for foreign trade
A6Dividend policy in multinationals and transfer pricing
Dividends policy
The corporation’s short- and long-term reinvestment strategy
Alternatives to a cash dividend
The corporate tax regime within the host jurisdiction
Transfer Pricing
Syllabus B
Advanced Investment Appraisal
B1Discounted cash flow techniques
NPV
2:39
Capital rationing - Single period- Types
4:32
Capital rationing & divisible projects
4:32
Capital rationing & INdivisible projects
4:32
Capital rationing - Multi-period
Risk & Uncertainty basics
0:42
Sensitivity Analysis
Probability analysis
Payback method
3:00
Adjusted Payback
3:05
Monte Carlo simulation
Project value at risk
Internal Rate of Return
2:57
MIRR
B2Application of option pricing theory in investment decisions
Pricing of options
Black-Scholes Option Pricing (BSOP) model
Real options in decision making
NPV and Real Options
Option to delay or defer
Option to abandon
Option to expand
B3Impact of financing on investment decisions and APV
Debt or Equity?
3:26
Long term finance
2:01
Securitisation
Islamic Finance - Introduction
0:51
Mudaraba (equity), Sukuk (debt) & Musharaka (JV)
1:54
Ijara (leasing) and Murabaha (credit)
0:53
Basic Idea - IF
Advantages of Islamic finance
Disadvantages of Islamic finance
Initial Coin Offering
Duration (Macauley duration)
Credit spread
Gearing drift
Capital structure theories
8:09
Modigliani and Miller propositions
Static tradeoff theory
Agency effects
Adjusted present value
Green Finance
1:07
B4Valuation and the use of free cash flows
Valuations - Introduction
7:14
Market Capitalisation
2:01
Asset Based Valuations
3:19
Using PE ratio
2:03
Earnings Yield
Dividend Valuation
Discounted Cashflows
Discounted Free cash flow basis
Free cash flows
Free cash flow to equity
BSOP and default risk
B5International investment and financing decisions
International investment and financing decisions
Forecast project or organisation FCF from overseas projects
Remission of funds
Syllabus B3cd
The Cost of Capital
Cost of Capital - Intro
Cost of Capital - Basics
1:45
Calculating the WACC
9:24
Cost of equity
Dividend Valuation Model
7:23
capm
3:13
capm continued
DVM or CAPM?
3:09
Ungearing & Regearing
4:00
Cost of debt
Redeemable debt
7:19
Irredeemable, preference shares and Bank loans
4:48
Convertible Debt
6:56
WACC - Putting it all Together
Advanced cost of capital
WACC calculated using Asset Beta
WACC calculated using ungeared Ke
Syllabus C
Acquisitions And Mergers
C1Acquisitions and mergers versus other growth strategies
Reasons for and against acquisitions, mergers and divestments
Strategy Development
Acquisitions and mergers as a method of corporate expansion
High failure rate of acquisitions
Synergy
Reverse Takeovers
C2Valuation for acquisitions and mergers
The problem of overvaluation
The three acquisition types
High growth start-ups
C3Regulatory framework and processes
Regulation of takeovers
The conduct of a takeover
C4Financing acquisitions and mergers
Forms of consideration
Methods of raising cash
Cash consideration
Share exchange
Earn-out arrangements
Syllabus D
Corporate Reconstruction And Re- Organisation
D1Financial reconstruction
Capital reconstruction schemes
General guidelines in reconstruction
Syllabus E
Treasury And Advanced Risk Management Techniques
E1The role of the treasury function in multinationals
The role of the treasury management function
Protection against transaction risks
Exchange and OTC
Futures
Risks
E2The use of financial derivatives to hedge against forex risk
Types of foreign currency risk
3:13
Predicting Exchange Rates
5:47
Understanding Exchange Rates
3:41
Forward Rates
3:14
Money Market Hedges - payment
9:23
Money Market Hedge - Receipt
6:13
Currency Futures
2:43
Currency Futures - calculation
Currency Swaps
1:05
Currency Options
Options - calculations
Netting
Matching
E3The use of financial derivatives to hedge against interest rate risk
Interest Rate Risk
14:17
Interest Rate - Forwards & Futures
1:20
Interest rate futures
LIBOR and LIBID
Forward rate agreements (FRA)
FRAs - calculation
Interest Options and Swaps
3:14
Options on interest rate futures - calculation
Interest rate swaps - examples
Interest rate collar
Market Value of Bonds
2:47
Market value of bonds - calculation
Valuing bonds based on the yield curve