CPA Section 5 – Advanced Financial Management (KASNEB)

Categories: Accountancy, CPA Section 5
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About Course

This unit is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to apply advanced financial management techniques in an organisation

What Will You Learn?

  • A candidate who passes this paper should be able to:
  •  Evaluate advanced capital budgeting decisions
  •  Design an optimal capital structure for an organisation
  •  Predict corporate failure
  •  Apply derivatives in financial risk management
  •  Apply financial management skills in the public sector
  •  Understand concepts of corporate restructuring and re-organisation
  •  Apply valuation techniques in real estate finance

Course Content

Advanced Capital Budgeting Decision
Advanced capital budgeting decision

  • Incorporating risk/uncertainty in capital investment decisions
  • Nature and measurement of risk and uncertainty
  • Techniques of handling risk: sensitivity analysis, scenario analysis, decision trees, simulation analysis, utility analysis, risk adjusted discounting rate(radr) and certainty equivalent method
  • Incorporating capital rationing in capital investment appraisal
  • Incorporating inflation in capital investment appraisal
  • Evaluation of projects of unequal lives
  • The real options-strategic investment option, timing option, abandonment option and the replacement option
  • Common capital budgeting pitfalls
  • Test

Portfolio Theory and Analysis:
Portfolio theory and analysis:

Advanced Financing Decision
Advanced financing decision

Mergers and Acquisitions
Mergers and acquisitions

Corporate Restructuring and Re-organisation
Corporate restructuring and re-organisation

Derivatives in Financial Risk Management
Derivatives in financial risk management

International Financial Management
International financial management

Real Estate Finance
Real estate finance

Emerging Issues and Trends
Emerging issues and trends

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