This focal area is geared to employment in the private sector where specialised knowledge of financial management and analysis is required.
Financial management focuses on the following:
- Financial planning and control
- Short-term insurance
- Capital investments
- Mergers and acquisitions
- Financial director
- Financial advisor
- Financial analyst
Undergraduate subjects offered in Financial Management:
Introduction to Financial Management 214
Compiling of the statement of financial position, the statement of comprehensive income and the statement of cash flow; the measurement and evaluation of financial performance with reference to profitability, liquidity and solvency analysis; case studies about financial analysis; introduction to the investment decision; the financing decision; sources of finance; the dividend decision; financial planning and the management of working capital with specific reference to cash, trade receivables and inventory control; financial failures; international financial management.
Corporate Financial Management 244
The evaluation and interpretation of corporate financial performance by means of detailed ratio analyses; extensive analysis of the statement of cash flows; basic share and bond valuation; discussion of the influence of dividend policy on corporate valuations; the influence of financing policy on a firm’s value; evaluation of working capital management by means of the cash conversion cycle.
Financial Planning and Control 314
Calculation of the weighted average cost of capital, as well as the costs associated with the different capital components; financial valuation of enterprises; financial forecasting; the influence of inflation on annual financial statements.
Financial Management – Research 322
Identification and formulation of financial management problems and/or opportunities; setting financial research objectives; identifying appropriate research designs; conducting secondary and/or primary research; conducting financial data analysis to achieve research objectives.
Capital Investments 344
The application of the following financial selection measures on large capital projects: payback period method, method of the equivalent uniform annual cost, net present value method and the internal rate of return method; the impact of inflation when assessing investment projects and the calculation of the cost of capital; priority determination for multiple mutually exclusive projects.
Short-term Insurance 324
Insurance management with special reference to the application of financial and risk management in the South African context; the financial significance of the basic principles of short-term insurance; financial management practices and annual financial statements of short-term insurers; the calculation of the office premium; the significance of the solvency margin for short-term insurers; types of short-term insurance; the financial aspects when obtaining short-term insurance as well as the claim procedure; the financial aspects of reinsurance; the government as an insurer; international aspects of insurance management.
For Financial Management subjects in the Honours course, please refer to the Honours Page.