· Analyse different types of organisations and their objectives.
· Impact of underlying economic conditions and business variables on financial objectives
· Use of policy decisions to meet cash needs of entity
· Sensitivity of forecast financial statements and future cash position to these policy decisions
· Consideration of industry regulations such as price and service controls
· Consideration of domestic and international tax regulations
· Capital structure theories (traditional theory and Miller and Modigliani (MM) theories)
· Calculation of cost of equity and weighted cost of capital to reflect changes in capital structure
· Impact of choice of capital structure on financial statements
· Structuring debt/equity profiles of companies in a group
· Types of debt instruments and criteria for selecting them
· Managing interest, currency and refinancing risks with target debt profile
· Private placements and capital market issuance of debt
· Methods of flotation and implications for management and shareholders
· Rights issues, choice of discount rates and impact on shareholders
· Calculation of theoretical ex-rights price (TERP) and yield adjusted TERP
· Sources and types of financial risk
· Evaluate how financial risks are quantified
· Recommend ways to manage economic and political risks
· Reasons for M&A and divestments
· Process and implications of management buy-outs
· Acquisition by private equity and venture capitalist
· Different methods of equity valuation (share prices, earnings valuation, dividend valuation, discounted cash flow valuation)
· Methods of financing cash offer and refinancing target entity debt
· Post-transaction value incorporating effect of intended synergies