Lecture 1-2 - Corporate Finance Dr. Rania Salem Department...

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Dr. Rania Salem/Corporate Finance Winter 2011 Corporate Finance Dr. Rania Salem Department of Finance Office: B3.209 Winter Term 2011 Lecture notes 1 Capital Budgeting Cash Flows
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General Information Lecturer: Dr. Rania Salem Email: [email protected] Lecturer Office Hour: Sunday 2 nd slot ( B3.209 ) Course Lecture: Saturday 1 st nd slot, hall H5 Dr. Rania Salem/Corporate Finance Winter 2011/2
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Course Agenda Long term Investment Decisions - Capital Budgeting Cash Flows - Capital Budgeting Techniques Long Term Financial Decisions - The Cost of Capital - Leverage & Capital Structure - Dividend Policy Short Term Financial Decisions Dr. Rania Salem/Corporate Finance Winter 2011/3
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Course schedule Dr. Rania Salem/Corporate Finance Winter 2011/4 Week Date Topic 1 10-Sep Introduction 2 17-Sep Ch. 8: Capital Budgeting Cash Flows 3 24-Sep Ch. 9: Capital Budgeting Techniques 4 1-Oct** Graduation Ceremony (no teaching activity) 5 8-Oct Ch. 9: Capital Budgeting Techniques 6 15-Oct Ch. 10: Risk & Refinements in Capital Budgeting 22-Oct Midterm Exams 7 29-Oct** Activity Week 3 rd year 8 5-Nov** Eid El Adha (H) 9 12-Nov Ch. 11: Cost of Capital 10 19-Nov Ch. 11: Cost of Capital 11 26-Nov** Islamic New year(1st Moharam) (H) 12 3-Dec Ch. 12: Leverage & Capital Structure 13 10-Dec Ch. 13: Dividend Policy 14 17-Dec Ch. 14:Working Capital & Current Assets Management 15 24-Dec** Western Christmas (H) 16 31-Dec Revision week *Subject t to change based on changes in the GUC calendar **No lecture
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Course Agenda Long term Investment Decisions - Capital Budgeting Cash Flows - Capital Budgeting Techniques Long Term Financial Decisions - The Cost of Capital - Leverage & Capital Structure - Dividend Policy Short Term Financial Decisions Dr. Rania Salem/Corporate Finance Winter 2011/5
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What is Capital Budgeting? Capital Budgeting is the process of identifying , evaluating , and implementing a firm’s investment opportunities. It seeks to identify investments that will enhance a firm’s competitive advantage and increase shareholder wealth. The typical capital budgeting decision involves a large up-front investment followed by a series of smaller cash inflows. Poor capital budgeting decisions can ultimately result in company bankruptcy. Dr. Rania Salem/Corporate Finance Winter 2011/6
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Capital Expenditures versus Operating Expenditures Capital expenditures: - An outlay of funds by the firm that is expected to produce benefits over a period of time greater than 1 year - Key Motives for Capital Expenditures: Expansion replacement renewal Operating expenditures: An outlay of funds by the firm resulting in benefits received within 1 year Dr. Rania Salem/Corporate Finance Winter 2011/7
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Capital Budgeting Process 1. Proposal Generation 2. Review and Analysis 3. Decision Making 4. Implementation 5. Follow-up Dr. Rania Salem/Corporate Finance Winter 2011/8
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This note was uploaded on 09/20/2011 for the course ACCT 502 taught by Professor Hassanouda during the Spring '11 term at German University in Cairo.

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Lecture 1-2 - Corporate Finance Dr. Rania Salem Department...

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