CWA ICWA Final : Group III - Financial Management & International Finance

ICWAICWA ICWA (2008)FinalSyllabus and Books • Group III - Financial Management & International Finance

ICWA :: Final
Paper 12 : Financial Management & International Finance
[One Paper: 3 hours:100 marks]

Objective . . .

Understand the scope, goals and objectives of Financial Management
To provide expert knowledge on concepts, methods and procedures involved in using Financial Management for managerial decision-making
To gain knowledge of international monetary and financial system
1.Overview of Financial Management10%
Finance and Related Disciplines
Scope of Financial Management,
Planning environment
Key decisions of Financial Management
Emerging role of finance managers in India
Earnings distributions policy
Compliance of regulatory requirements in formulation of financial strategies
Sources of finance – long term, short term and international
Exchange rate – risk agencies involved and procedures followed in international financial operations
2.Financial Management Decisions15%
Capital structure theories and planning
Cost of capital
Designing Capital Structure
Capital budgeting
Lease financing
Working capital management
3.Financial analysis & planning10%
Funds flow and cash flow analysis
Financial ratio analysis -Ratios in the areas of performance, profitability, financial adaptability, liquidity, activity, shareholder investment and financing, and their interpretation.
Limitations of ratio analysis
Identification of information required to assess financial performance
Effect of short-term debt on the measurement of gearing.
4.Operating and financial leverages5%
Analysis of operating and financial leverages
Concept and nature of leverages operating risk and financial risk and combined leverage
Operating leverage and Cost volume Profit analysis – Earning Before Interest and Tax (EBIT) and Earning Per Share (EPS), indifference point.
5.Financial Strategy15%
Financial and Non-Financial objective of different organizations
Impact on Investment, finance and dividend decisions
Sources and benefits of international financing
Alternative Financing strategy in the context of regulatory requirements
Modeling and forecasting cash flows and financial statements based on expected values for variables – economic and business
Sensitivity analysis for changes in expected values in the models and forecasts
Emerging trends in financial reporting
6.Investment Decisions15%
Costs, Benefits and Risks analysis for projects
Linking investment with customer’s requirements
Designing Capital Structure
The impact of taxation, potential changes in economic factors and potential restrictions on remittance on these calculations
Capital investment real options
Venture Capital financing
Hybrid financing / Instruments
7.Project Management10%
Project Identification and Formulation
Identification of Project opportunities
Project Selection Consideration and Feasibility Studies
Project appraisal & Cost Benefit analysis
Source of Project Finance & Foreign Collaboration
8.International Finance10%
Minimization of risk,
Diversification of risk
Forward and futures,
Forward rate agreements
Interest rate swaps
Caps, floors and collars
Parity theorems
Money market hedge
9.Sources of International Finance5%
Rising funds in foreign markets and investments in foreign projects
Forward rate agreements and interest rate guarantees
Transaction, translation and economic risk, Interest rate parity, purchasing power parity and the Fisher effects
Foreign Direct Investment
10.International Monetary and Financial System5%
Understanding the International Monetary System
Export and Import Practices
International Financial Management: Important issues and features, International Capital Market
International Financial Services and Insurance: Important issues and features

Recommended Books

Modern Corporate FinanceA.C.ShapiroMacmillan
Financial Management: Theory & PracticePrasanna ChandraTata McGraw Hill
Financial Services: Perspective & ChallengesS.L.HayesHarvard Business School
International FinanceMurice D.LeviTata McGraw Hill
International Financial ManagementJain, Peyrard & YadavMacmillian India
World Trade Organisation (WTO) and IndiaShyamal BanerjeeMeheria Research Centre
Multinational Financial ManagementA.C.ShapiroPrentice Hall Of India
Financial Management (4th edition)Khan & JainTata McGraw-Hill