Elements of corporate finance PDF Lecture notes, eBook download for MBA


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Feb 22, 2015
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Dear MBA Peers,

I am sharing with everyone the lecture notes on the subject Elements of corporate finance. This eBook in the PDF format will help you in your studies and research on the subject Elements of corporate finance.

The following topics are covered in this Elements of corporate finance eBook/lecture notes:

>> The Financial Environment: Financial Management: Objectives, Owner Wealth Maximization, Share Price Maximization, Earnings Per Share, Managers and Owner Wealth Maximization, Financial Management, Decisions: Balance Sheet, Asset/Investment Decisions, Net Worth/Financing Decisions, Income Statement, Consolidated Statement of Cash Flows, Financial Ratio Analysis, Profitability Ratios, Debt (Financial Leverage) Ratios, Free Cash Flows, Market Value and Stock Prices Versus Book, Value Organizational forms of Business and Corporate Income Tax: Forms, Advantages and Dividend Income Disadvantages, Finance in the Organization Chart, Corporate Income Tax, Corporate Interest, Dividend Income.

>> Financial Securities, Markets and Valuation Models: Net Present Value: Time Value of Money, Future Value Calculations, Present Value Calculations, Relationship between Present Values, Future Values and Rates of Return, Interest Factors; Present Value: Sequence of Sums, Annuity; Future Value: Sequence of Cash Flows, Annuities Due, Perpetuities; Net Present Value (NPV): Calculating Interest Rates, Single Payments, Annuities, Unequal Payments, Effective Annual Rate (EAR), Annual Percentage Rate (APR), Internal Rate of Return (IRR); Financial Securities; Common Stock: Classes and Prices, Preferred Stock, Debt Securities: Short Term and Long Term, Bonds, Treasury Bills; Convertible Securities Financial Markets: Markets, Institutions, Private Placements, Capital Markets, International Markets, Eurocurrency Markets, Eurobond Market; Interest Rates Basic Valuation Model: Basic Model, No-Growth Version, Constant Version; Market Efficiency Risk: Calculating Standard Deviation and Variance, Returns and Risk, Diversification, and Beta.

>> Investment Decision and Capital Budgeting: Investment Analysis: Cash Flows and Discount Rates, Depreciation System, Salvage Value, Book Value and Taxes, Sunk Costs, Mutually Exclusive Investment Opportunities, Break-Even Analysis, Project Proposals; Capital Investment Decisions: NPV, Capital Budgeting Methods, IRR, NPV Profiles, and Payback Methods.

>> Financing Decisions: Financial Structure: The Product and the Labor Market, Stockholders and Bondholders, Creditors, Agency Costs; Financial Distress: Reorganization and Bankruptcy, Out-of-Court Arrangements, Ethics and Bankruptcy; the Cost of Capital: Cost of Debt, Yield to Maturity; Cost of Equity Capital: Preferred and Common Stock, the SML or Beta Approach, Weighted Average of Cost of Capital (WACC), Financial Leverage, EPS/EBIT Analysis Dividends: Types of Cash Dividends, Share Repurchases, Transactions Cost, Taxes, Dividend Policy, Undervalued Stock, Free Cash Flow Theory, Stock Dividends and Stock Splits, Dividend Reinvestment Plans.

>> Managing Capitals: Financial Ratios: Ratio Analysis, Liquidity Ratios, Activity Ratios, Accounts Receivable Ratios, Inventory Turnover Ratios, Fixed Asset Turnover Ratio, Debt Management Ratios, Total Debt to Total Asset Ratio, Interest Coverage Ratio, Fixed Charges Coverage Ratio, Profitability Ratios, Gross Profit Margin, Net Profit Margin, Return on Investment, Return on Owner's Equity, Market Ratios, Dividend Payout Ratios, Price to Earnings (P/E) Ratio, Market to Book Value Ratio, Dividend Yield; Working Capital Management: Components, the Cash Conversion Cycle, the Level of Current Assets, Working Capital Financing Strategies, an Integrated Financing Policy; Basic Principles of Bank Financing: 3 Cs (Character, Capital, Capability), Tandon Committee and Chore Committee Guidelines, CAS form of Application, Computation of Maximum Permissible Bank Finance (MPBF).

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