Definition; the Balance Sheet Model of the Firm; Capital Structure and the Financial
Manager; Goals of the Corporate Firm; Agency Costs and Setoff; Contracts Perspectives;
Managerial Goals; Separation of Ownership and Control; Financial Markets.
Chapter-2 Financial Planning & Growth
Financial Planning, Financial Planning Model; Ingredients; the Percentage of Sales Method;
Determinants of Growth; External Financing and Growth; Some Caveats of Financial
Planning Models.
Class Brief
11:21
Class-1 Requirements 1-13
06:06
Class-2 Requirements 14-23
10:30
Class-3 Requirements 24-30
13:13
Class-4 Requirements 31-34
00:00
Chapter-3 Making Capital Investment Decision
Incremental Cash Flows; Inflation and Capital Budgeting; Investments of Unequal Lives;
Replacement Decisions; Equivalent Annual Cost Method; Investment Decision under Capital
Rationing.
Class Brief
00:00
Class-1 Requirements 1-7
00:00
Chapter-4 Risk Analysis, Real Options and Capital Budgeting
Sensitivity Analysis; Scenario Analysis and Break Even Analysis; Monte Carlo Simulation;
Real Options; Decision Trees; Direct Risk Measurement; Adjusted Discount Rate vs.
Certainty Equivalent.
Chapter-5 Capital Structure Theory & Policy
Pie Theory; Can an Optimum Capital Structure be determined? MM Proposition I & II; Firm
Value and Financial Leverage; Taxes; Corporate Taxes; Expected Returns and Leverage;
Capital Structure and Cost of Capital; Capital Structure; Limits to the use of Debt; Cost of
Financial Distress, Personal & Corporate Taxes; Debt Signalling; Pecking Order Theory
Explaining Financial Choices; Option Pricing Implications; the Bondholder Wealth
Expropriation Hypothesis; Agency Theory and its Effects on Capital Structure; Checklist.
Chapter-6 Dividend Policy and Other Payouts
Types of Dividend; Methods of Dividend Payment; Dividend vs. Capital Gains; Dividend
and Firm Value; Dividend Irrelevance Argument; Homemade Dividend; Bird-in-the Hand
Fallacy; Market Imperfection & Taxes; Real World Factors Favouring a High Dividend
Policy; a Resolution of Real World Factors; Linter Model; Information Content of Dividend
(Dividend Signalling); Clientele Effects; Ex-Dividend Stock Price Behaviour, Common
Stock Repurchase; Stock Dividend and Stock Split; What We Know and Do Not Know about
Dividend Policy.
Chapter-7 Valuation and Capital Budgeting for the Levered Firm
APV Approach; Free Cash Flow to Equity (FCFE) Approach; WACC Method; Beta and
Leverage.
Chapter-8 Corporate Restructuring and Financial Distress
Corporate Restructuring and Control; Asset Engineering and Financial Structuring; Assets
Sales; Spin Off; Divestitures; Equity Carve-Out.
Chapter-9 International Financial Management:
Why Companies go for being Global; Multinational vs. Domestic Financial Management;
Exchange Rates; the International Monetary System; Trading in Foreign Exchange; Interest
Rate Parity; Purchasing Power Parity; Inflation, Interest Rates and Exchange Rates;
International Money and Capital Markets; Multinational Capital Budgeting; International
Capital Structures; Multinational Working Capital Management.
