Foundations of Finance

• Discuss 12 principles foundational corporate finance.
• Compare and contrast accounting net income and cash flows.
• Compare and contrast the market value of an asset or liability from the book value.

Business Valuation

• Use valuation techniques to determine the intrinsic value of debt and equity instruments.
• Analyze how markets adjust for risk.
• Apply the capital-asset pricing model to calculate a business’s required return.

Working Capital

• Describe the cash conversion cycle and its importance to working capital management.
• Identify sources and uses of short-term financing.
• Evaluate how the business policies of a firm affect accounts receivable and inventories.

Capital Budgets

• Calculate the cost of capital.
• Apply techniques used in capital budgeting decisions.
• Analyze a capital project’s present value based on expected future net cash flows.

Long-Term Financing

• Outline a method for managing capital structure.
• Evaluate the effect of dividend policy on stock price.
• Explain the types and main features of long-term debt.
• Compare and contrast leasing with debt/equity finance.

Financial Planning

• Analyze the effect of price setting on capital budgeting.
• Explain the methods, pitfalls, and benefits of capital rationing.
• Create a financial plan.