Basic Finance
How to calculate EBIT (Operating Profit)?
Calculating net profit before tax
Calculating net profit after tax
Earnings Available for Common Stockholders
Financial Ratios
Activity Ratios
Liquidity Ratios
Debt Ratios
Times Interest Earned Ratio (Interest Coverage Ratio)
Profitability Ratios
How to calculate EPS (Earnings per Share)?
Capital Budgeting
International capital budgeting decisions
Initial investment in capital budgeting decisions
Terminal Cash flow in capital budgeting decisions
Unsophisticated capital budgeting techniques
Internal Rate of Return method (IRR)
The Difference Between IRR and NPV
Equivalent Annual Annuity Approach (EAA)
Risk Scenario Analysis: Dealing with Risk in Capital Budgeting
Risk Adjusted Discount Rate: Dealing with Risk in Capital Budgeting
Leverage
Degree of total leverage (DTL)
Capital Structure
Capital structure decisions analysis with debt ratios
EBIT-EPS Capital Structure Approach
Annualized Net Present Value (ANPV)
Cost of Capital
Finding the after-tax cost of preferred stock (rp)
Finding the specific after-tax cost of common stock (rp)
Gordon model (Constant-Growth Valuation Model)
Using CAPM (Capital Asset Pricing Model)
Finding the after-tax cost of retained earnings (rr)
(WACC) Weighted average cost of capital (ra)
Weighted Marginal Cost of Capital – WMCC – and the Break Point
WMCC and Investment Opportunities Schedule
Dividends
Approaches to Common Stock Valuation
Importance of dividends and dividend policy
Declaring and payment of dividends
Factors favouring higher and lower dividends
Establishing a dividend policy
Stock splits and reverse stock splits
Stock repurchases (share buyback)
Agency problem and agency costs
Leasing
Advantages & Disadvantages of leasing
Operating and financial (capital) leases
Purchase versus lease decision
Corporate Structuring
Types of corporate restructuring
8 Specific motives for mergers and acquisitions
Establishing a value for the target company
Financing transactions with stock swaps
Finding the market price ratio of exchange
