Financial Management

The lesson focuses on the time value of money, the basic principles of a business finances, the origin of its capitals and the evaluation of investments.

Objectives

Upon successful completion of this course, the student should: 1. Identify the strengths and weaknesses of enterprise financial terms. 2. Gain expertise in working capital management. 3. Evaluate the long-term financing policies.

Prerequisites

There are no prerequisites

Syllabus

1. Introduction • Chapter. • Interest • Interest rate. • Simple interest. • Composite interest or compound interest. • Effective interest rate. 2. Suspenders • Suspenders. • Overdue Rada. • future Rada. • Dienekis Rada. • Dienekis Rada with geometric growth conditions. 3. Technical investments I. • Required return rate. • Required rate of return without risk. • Required return rate of emergency conditions. • The method of payback period (Payback period). • Discounted payback period. 4. Investment Techniques II • AAR - method of reimbursement rate to the carrying amount of the investment. • The method of NPV (Net present value). 5. Investment Techniques III • The method of internal reimbursement rate. • Calculation Procedure Internal Performance by linear interpolation. • Method of equivalent annual net Chrois. 6. Technical investments IV • Method of profitability index. • Reconciliation of Net discounted cash flows. • Weaknesses Method Internal Rate of Return. • Mutually exclusive investments. • reinvestment rate of annual net operating inflows. • An alternative way of determining CFR. • Modified internal rate of return R *. 7. Mutually exclusive investments • Mutually exclusive investments with different initial cost. • Mutually exclusive investments with different picture of annual net cash flows. 8. Performance - Investment Risk • Cost of capital. • Synthetic Parts of Capital Cost. • Cost of credit. • Capital Asset Pricing Model. • Weighted Average Cost of Capital. • Model-Based Valuation Shares the dividends. • Risk Premium Calculation arbitrarily. • Sensitivity analysis. • Risk analysis using scenarios