FIN300 Managerial Finance
Welcome!
Instructor: Edward H. Blinder
(D.B.A./ABD, M.B.A., M.A.,M.Sc.,M.Res.)
1-1
Goals of the course
First course in finance
Introduction to the major concepts
Mathem
Chapter 10
Making capital investment decisions
Relevant Cash Flows 10.1
In order to implement our capital budgeting tools
like NPV and IRR, we need a cash flow stream.
The cash flows that should be
2017
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 inve
2017
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 sc
2017
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 histo
BONDS
Chapter 7
7-1
What are bonds? 7.1
A bond is an interest-only loan.
A firm or a government issues a bond when they
want to borrow money.
They are called the bond-issuing firm or borrower or
de
Chapter 12
Lessons from capital market history
12-1
Defining Return
Holding Period Return is also known as Total Dollar
Return or Percentage Total Return or just return
P0 and P1 are the price at st
Chapter 13
Return, risk and the security market line
12-1
Expected Returns 13.1
Given a list of historical returns for an investment, the
return and standard deviation can be calculated as per
chapte
2017
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 acco
2017
CHAPTER5
INTRODUCTIONTOVALUATION:THETIMEVALUE
OFMONEY
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
Time Value of Money
Introduction to the time value of money
Chapter 5 (All sections)
Future Value, Present Value, Interest rates
and number of periods
Chapter 6 (Sections 6.1 and 6.2)
Annuities a
Continue with chapter 6
Section 6.3: Rates
Section 6.4: Loan types and loan
amortizations
4-1
Interest rates
To date, Ive supplied interest rates without elaborating on the
basis or the frequency
Chapter 4 Long term financial
planning and corporate growth
By the end of today, we will have covered
the material for Lab 1 and Lab 2 in Lyryx
2-1
Long-term financial planning and
corporate growth
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 t
FIN300 Managerial Finance I
Ryerson University
Fall 2014
Dr. Yi Feng
Todays Agenda
Motivation
A Key Concept in Finance
My Message
To Create a Learning Environment
Course Outline
Chapter 1
Chapter 2
Initial Cost of New Equipment
Expected Salvage of New Equipment
Incremental Revenues
Incremental Expenses
Starting NWC
Subsequent NWC (% of sales)
Tax Rate
CCA Rate
Discount Rate
Number of periods
Par
Recap of Last Class
Bond price = PV(coupons) + PV (face value)
C
C
C
F
P
2
t
(1 r ) (1 r )
(1 r ) (1 r ) t
The coupon rate is not the interest rate.
As time goes by, interest rate may change in t
Example
Sorrel Labs
Sorrel was operating at full capacity last year and had sales of $7.5 million. Sorrels
marketing department is forecasting a 20% sales increase for the coming year. Further,
the fi
Recap of Last Class
FV PV (1 r )t
(1 r )t 1
FV C
r
1
1 (1 r )t
PV C
r
1
Exercise
Question
Your 40 year aunt wants to start saving for her retirement. She
expects to retire at 65. She thinks th
Chapter 9
Net Present Value (NPV) Dominant Criteria
Other Investment Criteria
Internal Rate of Return (IRR)
Payback Rule
Average Accounting Return (AAR)
Profitability Index (PI)
Practice of Capital Bu