Professional Documents
Culture Documents
Unit 1: An Overview of Financial Management and the Financial Environment Financial management, Role of financial manager, Finance functions, Goal of the firm, Financial markets and institutions. Unit 2: Financial Statements, Cash Flow, and Taxes Financial Statements and Reports: The Balance Sheet, The Income Statement, Statement of Stockholders' Equity, Net Cash Flow, Statement of Cash Flows; MVA and EVA Unit 3: Analysis of Financial Statements Analysis of Financial Statements; Financial Analysis: Liquidity Ratios, Asset Management Ratios, Debt Management Ratios, Profitability Ratios, Market Value Ratios Trend Analysis; Common Size Analysis; and Percentage Change Analysis Tying- the Ratios Together: The Du Pont Equation Comparative Ratios and Benchmarking, Uses and Limitations of Ratio Analysis Unit 4: Time Value of Money Time Lines; Future Values, Present Values, Finding the Interest Rate, Finding the Number of Years, N Annuities: Future Value of an Ordinary Annuity, Future Value of an Annuity Due, Present Value of Ordinary Annuities and Annuities Due ;Finding Annuity Payments, Periods, and Interest Rates; Perpetuities Uneven, or Irregular, Cash Flows, Future Value of an Uneven Cash Flow Stream, Semiannual and Other Compounding Periods, Fractional Time Periods, Amortized Loans, Growing Annuities
Unit 5: Bond Valuation Key Characteristics of Bonds, Bond Valuation, Changes in Bond Values over Time, Bonds with Semiannual Coupons Bond Yields: current yield, capital gain yield, yield to maturity and yield to call Unit 6: Risk, Return, and the Capital Asset Pricing Model Concept and measurement of return and risks, portfolio return and risk, CAPM Unit 7: Stock Valuation and Stock Market Equilibrium Key Characteristics of common stock, Valuing Common Stocks; Valuing a Constant Growth Stock; Expected Rate of Return on a Constant Growth Stock, Valuing Non-constant Growth Stocks, Stock Valuation by the Free Cash Flow Approach, Preferred stock valuation Unit 8: The Cost of Capital The Cost of Capital, components cost of capital: Cost of Debt, Cost of Preferred stock, Cost of Common Stock: The CAPM Approach, Dividend-Yield-Plus-Growth-Rate, or Discounted Cash Flow (DCF) Approach , Over-Own-Bond -Yield -Plus-judgmental-Risk-Premium Approach; Composite, or Weighted Average, Cost of Capital, WACC, Factors That Affect the WACC Unit 9: The Basics of Capital Budgeting: Evaluating Cash Flows The Basics of Capital Budgeting: Evaluating Cash Flows, An Overview of Capital Budgeting, Net Present Value (NPV), Internal Rate of Return (IRR) , Modified Internal Rate of Return (MIRR), Profitability Index (PI), Payback Period, Unit 10: Cash Flow Estimation Estimation of initial investment (NCO), annual cash flow after tax (CFAT), Terminal cash flow of new project and replacement decision. Unit 11: Financial Planning and Forecasting Financial Statements Financial Planning' and Forecasting Financial Statements; Overview of Financial Planning, Sales Forecast, Additional Funds Needed (AFN) Method, Forecasted Financial Statements Method, Forecasting' When the Ratios Change