Introduction:
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· Agency theory
· The goal of financial management
· The agency problem and control of the corporation
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
Risk Analysis, Real options and Capital Budgeting
· Sensitivity analysis, scenario analysis and break even analysis
· Monte Carlo simulation
· Real options
· Decision trees
Efficient capital markets and behavioral challenge
· Foundation of market efficiency
· Different types of efficiency
· The behavioral challenge of market efficiency
Capital structure : basic concepts
· The pie theory
· Value maximization versus shareholders interest
· MM models
Raising Capital:
· Early stage financing and venture capital
· The announcement of new equity and value of the firm
· The rights and its puzzle
· Dilution
· Shelf registration
Raising Capital:
· The rights and its puzzle, Dilution
· Shelf registration, Leasing
Valuation and capital budgeting for the levered firm
● Adjusted present value approach
● Weighted average cost of capital method
● Beta and leverage
Dividends and other payouts:
● Different types of payouts, Standard method of cash divided payments
● Repurchase of stock, The clientele effect
Mergers, Acquisitions and Divestitures:
· The basic forms of acquisitions
· Synergy, Side effects of acquisition
Mergers, Acquisitions and Divestitures: