CHAPTER6
DISCOUNTEDCASHFLOWVALUATION
Learning Objectives
LO1
LO2
LO3
LO4
How to determine the future and present value of investments with multiple cash flows.
How loan payments are calculated and how to find the interest rate on a loan.
How loans are amo

CHAPTER 11
PROJECT ANALYSIS AND EVALUATION
Learning Objectives
LO1
LO2
LO3
LO4
LO5
How to perform and interpret a sensitivity analysis for a proposed investment.
How to perform and interpret a scenario analysis for a proposed investment.
How to determine

CHAPTER1
INTRODUCTIONTOCORPORATEFINANCE
Learning Objectives
LO1
LO2
LO3
LO4
LO5
The basic types of financial management decisions and the role of the financial manager.
The financial implications of the different forms of business organization.
The goal o

CHAPTER 5
INTRODUCTION TO VALUATION: THE TIME VALUE
OF MONEY
Learning Objectives
LO1
LO2
LO3
LO4
How to determine the future value of an investment made today.
How to determine the present value of cash to be received at a future date.
How to find the ret

CHAPTER 2
FINANCIAL STATEMENTS, TAXES, AND CASH FLOWS
Learning Objectives
LO1
LO2
LO3
LO4
LO5
The difference between accounting value (or book value) and market value.
The difference between accounting income and cash flow.
How to determine a firms cash f

CHAPTER 9
NET PRESENT VALUE AND OTHER INVESTMENT
CRITERIA
Learning Objectives
LO1
LO2
LO3
LO4
LO5
LO6
LO7
How to compute the net present value and why it is the best decision criterion.
The payback rule and some of its shortcomings.
The discounted payback

CHAPTER 7
INTEREST RATES AND BOND VALUATION
Learning Objectives
LO1 Important bond features and types of bonds.
LO2 Bond values and yields and why they fluctuate.
LO3 Bond ratings and what they mean.
LO4 How are bond prices quoted.
LO5 The impact of infla

CHAPTER8
STOCKVALUATION
Learning Objectives
LO1 How stock prices depend on future dividends and dividend growth.
LO2 The characteristics of common and preferred stocks.
LO3 The different ways corporate directors are elected to office.
LO4: The stock marke

CHAPTER 10
Making Capital Investment Decisions
Learning Objectives
LO1
LO2
LO3
LO4
LO5
LO6
LO7
LO8
How to determine relevant cash flows for a proposed project.
How to project cash flows and determine if a project is acceptable.
How to calculate operating

CHAPTER12
SOME LESSONS FROM CAPITAL
MARKET HISTORY
Learning Objectives
LO1
LO2
LO3
LO4
How to calculate the return on investment.
The historical returns on various important types of investments.
The historical risks on various important types of investme

CHAPTER16
FINANCIAL LEVERAGE AND CAPITAL STRUCTURE
POLICY
Learning Objectives
LO1 The effect of financial leverage on firm value and cost of capital.
LO2 The impact of taxes and bankruptcy on capital structure choice.
LO3 The essentials of the bankruptcy

CHAPTER15
RAISING CAPITAL
Learning Objectives
LO1
LO2
LO3
LO4
The venture capital market and its role in the financing of new, high-risk ventures.
How securities are sold to the public and the role of investment banks in the process.
Initial public offeri

CHAPTER13
RETURN, RISK, AND THE SECURITY MARKET LINE
Learning Objectives
LO1
LO2
LO3
LO4
The calculation for expected returns and standard deviation for individual securities and portfolios.
The principle of diversification and the role of correlation.
Sy

CHAPTER14
COST OF CAPITAL
Learning Objectives
LO1
LO2
LO3
LO4
LO5
How to determine a firms cost of equity capital.
How to determine a firms cost of debt.
How to determine a firms overall cost of capital.
How to correctly include flotation costs in capital

CHAPTER17
DIVIDENDS AND DIVIDEND POLICY
Learning Objectives
LO1
LO2
LO3
LO4
Dividend types and how dividends are paid.
The issues surrounding dividend policy decisions.
The difference between cash and stock dividends.
Why share repurchases are an alternat