FINA 2203 - Fundamentals of Business Finance

• Corporation
• Financial Manager
• Ownership and Control
• Managing Managers
• Stock Market Classification
• Transaction Costs
• New Competition and Market Changes

Time Value of Money

Basic TVM

• Valuation Principle
• Law of One Price
• Time Value of Money

Valuing Cash Flow Streams

• Value of a Cash Flow Stream
• Perpetuity
• Annuity
• Growing Perpetuity
• Growing Annuity
• Solving Cash Flow Problems

Interest Rates

• Annual Percentage Rate
• Effective Annual Rate
• Amortizing Loans
• Opportunity Cost of Capital

Investment Decisions

• Investment Decision Rules
  • Net Present Value
  • Internal Rate of Return
  • Delayed Investments
  • Payback Rule
• Mutually Exclusive Projects
• Projects with Different Lives

Cash Flows

• Balance Sheet
• Book Value and Market Value
• Income Statement
• Cash Flow
• Capital Expenditure vs. Operating Expenses
• EBITDA
• Statement of Cash Flows

Capital Budgeting

• Capital Budgeting
• Incremental Free Cash Flow
• Forecasting Incremental Earnings
• Converting Earnings to Cash Flows
  • Incremental Earning and Cash Flow Example
• Terminal Cash Flows
• Free Cash Flow Adjustments
• Tax Shield Approach

Bonds

• Bonds
• Zero Coupon Bonds
• Coupon Bonds
• Bond Pricing

Other

• Finance Glossary

Clarification

• Impact of depreciation on cash flow?