Advance Financial Management Practice Exam
Advance Financial Management Practice Exam
About Advance Financial Management Exam
The Advance Financial Management Exam is tailored for finance professionals, analysts, and senior managers who want to enhance their expertise in strategic financial decision-making. This exam covers critical areas such as capital budgeting, financial risk management, working capital optimization, and corporate finance strategies. It is ideal for those aiming to move into leadership roles or advisory positions within finance and investment sectors.
Who should take the Exam?
This exam is ideal for:
- Finance managers and financial controllers
- Chartered accountants and investment analysts
- MBA finance graduates and CFA candidates
- Senior executives involved in financial planning and strategy
- Professionals preparing for leadership roles in corporate finance
Skills Required
- Strong foundational knowledge of financial management principles
- Analytical thinking and proficiency in financial analysis
- Familiarity with corporate finance and capital budgeting tools
- Understanding of financial markets and instruments
- Ability to interpret financial statements and ratios
Knowledge Gained
- Advanced techniques in capital budgeting and investment appraisal
- Comprehensive understanding of financial risk and its mitigation
- Strategies for working capital and liquidity management
- In-depth knowledge of mergers, acquisitions, and restructuring
- Expertise in dividend policy, cost of capital, and valuation models
Course Outline
The Advance Financial Management Exam covers the following topics -
Domain 1 – Capital Budgeting and Investment Decisions
- Net Present Value (NPV), IRR, Payback Period
- Strategic investment appraisal methods
- Capital rationing and decision-making under risk
Domain 2 – Financial Risk Management
- Types of financial risks and their sources
- Hedging strategies using derivatives
- Value-at-Risk (VaR) and scenario analysis
Domain 3 – Corporate Financing Strategies
- Capital structure theories and planning
- Long-term financing instruments and markets
- Cost of capital and leverage analysis
Domain 4 – Working Capital and Liquidity Management
- Cash flow forecasting and liquidity planning
- Inventory, receivables, and payables management
- Operating cycle and financing strategies
Domain 5 – Business Valuation and Restructuring
- Valuation methods: DCF, market multiples, asset-based
- Mergers, acquisitions, and divestitures
- Financial restructuring and turnaround strategies
Domain 6 – Dividend Decisions and Profit Retention
- Dividend policy theories and practices
- Impact on shareholder value and firm valuation
- Retained earnings vs. dividend payout
