Institute of Commercial Management | Qualification Subject

Corporate Financial Management

ICM Professional Diploma Unit

Corporate Financial Management aims to equip learners with an understanding of mergers, takeovers and capital markets.

Main Topics of Study:

Mergers and Takeovers

  • Reasons for growth
  • ~Horizontal
  • ~Vertical
  • ~Conglomerate integration
  • Financing of growth

Stock exchanges 

  • Stock exchanges around the world
  • Globalisation of financial flows
  • The Importance of stock exchanges
  • Equity markets available to companies
  • How stock exchanges work
  • Regulation

Sources of Finance

  • Stock markets
  • Raising equity capital
  • Long-term debt finance
  • Short and medium-term finance and decision making, treasury and working capital management
  • Stock market efficiency
  • Stock, Bond and Business Valuation
  • Dividend Decision
  • Cost of Capital

Managing Risk

  • Derivatives
  • Managing exchange-rate risk

Example Candidate Response Booklet

Example Candidate Response (ECR) Booklets are a source of crucial information for Centres and Candidates as they use real candidate responses. We ask Senior Examiners to comment on five or more responses in terms of why the mark was awarded with commentary about how to improve the answer (if necessary).

Recommended Reading

Main Text:

Arnold, G & Lewis, D. (2019) Corporate Financial Management, 6th edition, Pearson

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Brigham, E and Ehrhardt, M. (2008). Financial Management: Theory and Practice. 12th ed. Ohio: Thomson Higher Education. 

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Dyson, J.R. (2003). Accounting for Non-Accounting Students. 6th ed. Upper Saddle River NJ: Prentice Hall

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Wood, F., & Sangster, A., (2008). Frank Wood’s Business Accounting 2. 11th ed. Harlow: Pearson Education Limited

Indicative Text:

Alternative Text and Further Reading: