This course, together with Principles of Finance I, is designed to be an introduction to corporate finance practice. These courses analyze the three broad areas of financial decision problems faced by modern corporations:
- Investment decision (capital budgeting)
- Financing decision (capital structure)
- Pay-out decision (dividend policy)
During the course the fundamental principles of bond and stock valuation will be covered together with most common risk-return models. In Principles of Finance I the main focus is on analysis of cash flow valuation and capital budgeting decisions.
Learning Outcomes:
- Define cash flow
- Know the difference between cash flow and earnings
- Understand the importance of financial planning and the relationship between operations, financing and growth.
- Evaluate future cash flow (time value of money)
- Evaluate both bonds and stocks
- Perform capital investment analysis
