Dividends and share price growth are the two ways in which wealth can be provided to shareholders. This article looks at some theories on dividend payments, as well as the practical matters that have to be taken into account and a discussion on dividend policies.
The capital asset pricing model – part 1
In the first of a three-part series of articles, we consider the CAPM and its components, shows how it can be used to estimate the cost of equity, and introduces the asset beta formula.
The capital asset pricing model – part 2
This article describes how to apply the CAPM when calculating a project-specific discount rate to use in investment appraisal.
CAPM: theory, advantages, and disadvantages
In the final article in his three-part series, we look at the theory, advantages and disadvantages of CAPM.
Business finance for SMEs
Also available as a podcast on iTunes
In this article, we consider potential finance sources that an SME could use, with a particular focus on the more modern sources of crowdfunding and supply chain financing.
Analysing the suitability of financing alternatives
This article suggests an approach for students to apply to a key area of the Financial Management syllabus before finishing with a worked example to demonstrate the technique discussed.
Introduction to Islamic finance
This article takes a look at Islamic finance, which has just been introduced to the Financial Management syllabus.
Section E of the syllabus deals with business finance. This article covers types of finance, sources of finance and mix of finance.
Cost of capital, gearing and CAPM – part 1
A fundamental part of financial management is investment appraisal: into which long-term projects should a company put money? This is the first part of the article that looks at how a suitable discount rate can be calculated.
Cost of capital, gearing and CAPM – part 2
A fundamental part of financial management is investment appraisal: into which long-term projects should a company put money? This is the second part of the article that looks at how a suitable discount rate can be calculated.
Optimum capital structure
Is it possible to increase shareholder wealth by changing the capital structure