Course Outline
LESSON ONE: CAPITAL BUDGETING
- Introduction
- Investment Decision Rule
- Capital budgeting
- Investment Appraisal Techniques
- The Post Audit
- SUMMARY
LESSON TWO: PROJECT CASHFLOW ANALYSIS AND CAPITAL BUDGETING
- INTRODUCTION
- ESTIMATING A PROJECT’S CASH FLOWS
- TAX EFFECTS
- Evaluating capital budgeting projects
- Replacement analysis
- Projects with unequal lives
- ABANDONMENT ANALYSIS
- Capital Rationing
- SUMMARY
LESSON THREE: CAPITAL STRUCTURE DECISIONS
- INTRODUCTION
- Equity and Debt Finance
- Business and Financial Risk
- Operating leverage
- CAPITAL STRUCTURE THEORY
- Debt-equity Mix and the Value of the Firm
- Irrelevance of Capital Structure NOI approach and MM hypothesis without
- Costs of Financial Distress
- Optimum Capital Structure
- Cash Flow Analysis Versus EBIT–EPS Analysis
- SUMMARY
LESSON FOUR: DIVIDEND POLICY DECISIONS
- INTRODUCTION
- Dividend Decision and Valuation of the Firm
- Dividend policy
- Effects of dividend policy on cost of equity
- Forms of stability of dividends
- SUMMARY
LESSON FIVE: DIVIDEND THEORIES
- INTRODUCTION
- The Theories
- Dividend Irrelevance Theory
- Dividend Relevance
- Establishing the dividend policy in practice
- SUMMARY
LESSON SIX: WORKING CAPITAL MANAGEMENT
- INTRODUCTION
- WORKING CAPITAL MANAGEMENT
- Operating cycles or cash cycle
- Solvency VS profitability
- Financial Ratios
- Multiple Discriminant Analysis (MDA)
- SUMMARY
LESSON SEVEN: INVENTORY MANAGEMENT
- INTRODUCTION
- Inventory
- SUMMARY
LESSON EIGHT: CASH MANAGEMENT
- INTRODUCTION
- Cash management
- SUMMARY
LESSON NINE: ACCOUNTS RECEIVABLE MANAGEMENT
- INTRODUCTION
- Credit Policy
- Efficiency /Turnover Ratios
- SUMMARY
