Week # 1 (Lecture 1 and 2)

The Role of Financial Management

• Introduction
• What Is Financial Management?
  • Investment Decision • Financing Decision • Asset Management Decision
• The Goal of the Firm
  • Value Creation • Agency Problems • Corporate Social Responsibility (CSR)
• Corporate Governance
• The Role of the Board of Directors 
• Organization of Financial Management Function

Week # 2 (Lecture 3 and 4)

The Business, Tax, and Fiancial Environments

• The Business Environment
  •  Sole Proprietorships • Partnerships • Corporations • Limited Liability Companies (LLCs)
• The Tax Environment
  •  Corporate Income Taxes • Personal Income Taxes
• The Financial Environment
  • The Purpose of Financial Markets • Financial Markets • Financial Intermediaries • Financial Brokers • The Secondary Market • Allocation of Funds and Interest Rates

Week # 3 (Lecture 5 and 6)

Time Value of Money

• The Interest Rate
  • Simple Interest
  • Compound Interest
    • Future Value Interest Factory and Present Value Interest Factors  
• Stream of Funds Flow
  • Single Amounts • Ordinary Annuities, Aunnities Due • Mixed Flows
• Perpetuity 
• Unknown Periodic Payments or Receipts
• Unknown Interest for Discount Rate
• The Rule of 72

Week # 4 (Lecture 7 and 8)

• Compounding More Than Once a Year
  • Semiannual and Other Compounding Periods
  • Continuous Compounding
  • Effective Annual Interest Rate
• Amortization a Loan
  • ​​Amortization Schedule

​Week # 5 (Lecture 9 and 10)

Valuation of Bonds

• Distinctions Among Valuation Concepts
  • Liquidation Value versus Going-Concern Value
  • Book Value versus Market Value
  •  Market Value versus Intrinsic Value
• Bond Valuation
  • Perpetual Bonds •
  • Bonds with a Finite Maturity
    • ​Zero Coupon Bonds
    • Non-Zero Coupon Bonds
• Preferred Stock Valuation

​​Week # 6 (Lecture 11 and 12)

Common Stock Valuation

• Are Dividends the Foundation?
  • ​​Dividend Discount Models
    • ​Constant Growth Model
    • Zero Growth Model
    • Growth Phases Model

Rates of Return (or Yields) of Bonds and Stocks

• Yield to Maturity (YTM) on Bonds and Interpolation
• Semi-annual Compounding
• Yield on Preferred Stock
• Yield on Common Stock

​​​Week # 7 (Lecture 13 and 14)

Risk and Return

• Defining Risk and Return
• Return • Risk
• using Probability Distributions to Measure Risk 
  • Expected Return and Standard Deviation •
  • Coefficient of Variation
• Attitudes Toward Risk
• Risk and Return in a Portfolio Context
• Portfolio Return • Portfolio Risk and the Importance of Covariance

​Week # 8 (Lecture 15 and 16)

• Diversification
  • Systematic and Unsystematic Risk
• The Capital-Asset Pricing Model (CAPM)
  • The Characteristic Line • Beta: An Index of
  • Systematic Risk • Unsystematic (Diversifiable)
  • Risk Revisited • Required Rates of Return and
  • The Security Market Line (SML)
  • Returns and Stock Prices
  • Challenges to the CAPM 
• Efficient Financial Markets
  • Three Forms of Market Efficiency
  • Does Market Efficiency Always Hold?

​Week # 9 (Lecture 17 and 18)

Financial Planning 

• Financial Statements
  • Balance Sheet Information • Income Statement Information
• A Possible Framework for Analysis
  • Use of Financial Ratios • Types of Ratios
  • Balance Sheet Ratios
  • Liquidity Ratios
  • Financial Leverage (Debt) Ratios
  • Income Statement and Income Statement/Balance Sheet Ratios
  • Coverage Ratios
  • Activity Ratios
  • Profitability Ratios

​Week # 10 (Lecture 19 and 20)

• Trend Analysis
• Common-Size and Index Analysis
  • Financial Statement Items as Percentages of Totals
  • Financial Statement Items as Indexes Relative to a Base Year

​​Week # 11 (Lecture 21 and 22)

Financial Planning and analysis of Funds and Cash-Flow  

• Flow of Funds (Sources and Uses) Statement
  • Alternative “Funds” Definitions
  • What Are Sources? Uses? • Adjustments
  • Analyzing the Sources and Uses of Funds Statement
• Accounting Statement of Cash Flows
  • Content and Alternative Forms of the Statement
  • Analyzing the Statement of Cash Flows

​​​Week # 12 (Lecture 23 and 24)

• Cash-Flow Forecasting
  • The Sales Forecast Collections and Other Cash Receipts
  •  Cash Disbursements
  • Net Cash Flow and Cash Balance
• Range of Cash-Flow Estimates
  • Deviations from Expected Cash Flows
  • Use of Probabilistic Information
• Forecasting Financial Statements
  • Forecast Income Statement
  • Forecast Balance Sheet
  • Use of Ratios and Implications

​​​Week # 13 (Lecture 25 and 26)

• The Capital Budgeting Process: An Overview
• Generating Investment Project Proposals
• Estimating Project “After-Tax Incremental Operating Cash Flows”
  • Cash-Flow Checklist 
  • Tax Considerations
  • Calculating the Incremental Cash Flows
  • Example of Asset Expansion
  • Example of Asset Replacement

​​​Week # 14 (Lecture 27 and 28)

Capital Budgeting Techniques

• Project Evaluation and Selection: Alternative Methods
  • Payback Period
  • Internal Rate of Return
  • Net Present Value
  • Profitability Index

​​​​Week # 15 (Lecture 29 and 30)

Required Returns and the Cost of Capital

• Creation of Value
  • Industry Attractiveness
  • Competitive Advantage
• Overall Cost of Capital of the Firm
  • Cost of Debt
  • Cost of Preferred Stock
  • Cost of Equity: Dividend Discount Model Approach
  • Cost of Equity: Capital-Asset Pricing Model Approach
  • Cost of Equity: Before-Tax Cost of Debt Plus Risk Premium Approach
  • Weighted Average Cost of Capital
  • Some Limitations and Rationale for a Weighted Average Cost
  • Economic Value Added (EVA)
• The CAPM: Project-Specific and Group-Specific Required Rates of Return

​​​​Week # 16 (Lecture 31 and 32)

• Capital-Asset Pricing Model Approach to Project Selection
  • Group-Specific Required Return
  • Some Qualifications
  • Ascribing Debt Funds to Groups
• Evaluation of Projects on the Basis of Their Total Risk
  • Risk-Adjusted Discount Rate Approach
  • Probability Distribution Approach
  • Contribution to Total Firm Risk: Firm-Portfolio Approach