Principles of Finance Academic Essay

1. Demonstrate an understanding of the fundamentals of financial management and of its importance in generating sustainable and socially responsible outcomes
2. demonstrate an understanding of the role of accounting and financial information in the financial decisions that are necessary for business success; for example, decisions as to what assets to invest in and how to raise funds for growth.
3. use various analytical techniques essential to making informed financial management decisions; for example, net present value analysis.
4. explain some of the theoretical and practical pitfalls of the analytical techniques and the theoretical decision models; for example, the error of including interest costs when estimating cash flows for capital budgeting.
5. analyse the issues involved in raising debt and equity capital for the firm in terms of their impact on the firm’s financial structure and risk.

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