Basic Financial Management

Basic Financial Management covers financial management concepts from the tutors’ perspective in a bid to keep things simple. In simple terms, the module starts from the nature and scope of financial management, setting tone for critical decisions and objectives characterizing the discipline as it relates to shareholder wealth dynamics. It then introduces readers to financial markets which form the backbone of long term capital financing. A brief of capital markets in Zimbabwe is given to give readers a feel of the Zimbabwean perspective. A primer on investment mathematics follows, preparing readers for quantitative aspects of decision making. Readers are then exposed to the mechanics of security valuation, cost of capital, investment appraisal, risk and working capital issues. Extensive use of numeric examples and illustrations has been adopted to enable readers to follow through each concept. In addition, a set of review questions is given at the end of each chapter for practice and concept self assessment.