Textbook in PDF format The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such. No reliance should be placed on the content as the basis for any investment or other decision or in connection with any advice given to third parties. Please consult your appropriate professional adviser as necessary. Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to any person in respect of any losses or other claims, whether direct, indirect, incidental, consequential or otherwise arising in relation to the use of such materials. The financial management function Basic investment appraisal techniques Investment appraisal – Discounted cash flow techniques Investment appraisal – Further aspects of discounted cash flows Asset investment decisions and capital rationing Investment appraisal under uncertainty Working capital management Working capital management – Inventory control Working capital management – Accounts receivable and payable Working capital management – Cash and funding strategies The economic environment for business Financial markets and the treasury function Foreign exchange risk Interest rate risk Sources of finance Dividend policy The cost of capital Capital structure Financial ratios Business valuations and market efficiency Employability and technology skills Questions and Answers Index I.1