Institute of Commercial Management | Qualification Subject

Capital & Investment

Main Topics of Study

This is not available as a Single Subject.

Main Topics of Study:

  • Sources and employment of capital and debt
  • The concept of equity and its significance in the development of the firm
  • The short-term and long-term roles of capital and debt in strategic planning
  • Investment appraisal and decision-making
  • Analysis and calculation of risk and reward
  • The importance of gearing and the gearing ratio
  • Return on investment and the ROI ratio
  • Net present value
  • Capital structure
  • Maximising firm value versus maximising shareholder value
  • Debt versus equity
  • Dividends and share repurchases
  • The significance of capital and debt and their effect on cash flow and the balance sheet

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:

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Corporate Finance: 2nd European edition 2013, Hillier, D., Ross, S., Westerfield, R., Jaffe, J. and Jordan, B., McGraw Hill

Indicative Text:

Alternative Text and Further Reading:

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Business Finance: Theory and Practice. 9th edition, McLaney, E., 2011, Harlow: Prentice Hall