● Introduction:
● What is Finance
○ The goal of financial management
○ The agency problem and control of the corporation
● Cash Flow Estimation and Risk Analysis
○ Estimating Cash Flows
○ Identifying the Relevant Cash Flows,
○ Project Cash Flow versus Accounting Income,
○ Incremental Cash Flows,
○ Cash Flow Estimation and Risk Analysis
○ Timing of Cash flows,
● Introduction to Project Risk Analysis,
○ Techniques for Measuring Stand-Alone Risk-Sensitivity Analysis, Scenario Analysis
● Financial statement analysis and financial models:
○ Financial statement analysis
○ Financial performance analysis
○ Financial models
● Leverage and Capital Structure:
○ Leverage,
○ break even analysis,
○ Operating, Financial andTotal Leverage,
○ Firms Capital Structure, Types of capital,
○ External assessment of capital structure,
● Leverage and Capital Structure:
○ Capital structure theory, Optimal Capital structure
○ EBIT EPS Approach to capital Structure
○ Choosing Optimal Capital Structure
● Financial Planning and Forecasting:
○ Flow of Fund Statement,
○ Sources and Uses of Fund,
○ Analyzing the Sources and Uses of Fund Statement,
○ Contents and alternative Forms of Cash Flow Statement.
○ The Financial Plan.
○ Cash Flow forecasting
● Valuation and capital budgeting:
○ Discounted cash flow valuation
○ Loan amortization
● Valuation and capital budgeting:
○ Net present value and other investment rules
○ The practice of capital budgeting
● Valuation and capital budgeting:
○ Making capital investment decision
○ Inflation and capital budgeting
● Interest rates and bond valuation:
○ Bond features
○ Valuation of bonds
○ Types of bond
○ Determinants of bond yields.
● Stock valuation :
○ Preferred stock
○ Common stock
○ Stock valuation models
● Stock valuation :
○ Dividend versus capital gains
○ Dividend discount model
○ Comparing with PE and enterprise value ratios
● Short Term Financing:
○ Trade Credit,
○ Credit term & Cost estimation,
○ Short term Loan
○ Estimation of Cost of Short Term Bank Loan
○ Commercial Paper & others
● Return and risk:
○ Return and its classification
○ CAPM
● Cost of Capital :
○ Cost of debt
○ Cost of preferred stock
○ Cost of retained earnings
○ Cost of external equity
○ Weighted average cost of capital