KEY TOPICS IN FIN 3310 - b. Payback Period, Net Present...

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KEY TOPICS IN FINANCE 33l0 I. OBJECTIVE OF THE FINANCIAL MANAGER 1. Goal of the Firm 2. Agency Problem II. FINANCIAL MARKETS AND INSTITUTIONS 1. Role of Financial Intermediaries 2. Role of Investment Bankers 3. Efficient Markets Hypothesis III. FINANCIAL STATEMENTS ANALYSIS AND FORECASTING 1. Financial Statements and Cash Flow Analysis 2. Analytical Ratios (Including DuPont Analysis) 3. Percent-of-Sales Forecasting IV. VALUATION 1. Cash Flow Determination 2. Time Value of Money a. Present Value and Future Value of: (1) Single Sum (2) Annuity (both ordinary annuity and annuity due) b. Perpetuities c. Non-annual Compounding (excluding continuous compounding) 3. Bonds and Stocks a. Characteristics b. Valuation 4. Capital Assets (Capital Budgeting) a. Incremental Cash Flow Calculations
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Unformatted text preview: b. Payback Period, Net Present Value, Internal Rate of Return, and Profitability Index V. ASSET SELECTION AND THE RISK-RETURN TRADEOFF 1. Securities, both in Isolation and in a Portfolio 2. Expected Return 3. Risk and Required Return a. Capital Asset Pricing Model b. Weighted Average Cost of Capital c. Risk-Adjusted Discount Rate VI. FINANCIAL LEVERAGE AND RISK-RETURN TRADEOFF 1. Business and Financial Risk 2. Breakeven Analysis and Operating Leverage 3. Financial Leverage 4. Combined Leverage VII. WORKING CAPITAL MANAGEMENT 1. Risk-Return Tradeoff in Working Capital Decisions 2. Sources of Short-Term Credit (Bank Loans and Trade Credit) 3. Calculation of Cost of Short-Term Credit...
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