☑ What corporate finance is

☑ How the field of corporate finance relates to accounting and economics

☑ Different types of business entities

☑ What financial statements are and how they are used

110 Finance, Accounting, & Economics

115 Finance Topics & Activities

120 Types of Business Organizations

125 Financial Management Goals

130 Financial Markets

**Financial Statements**

205 Financial Statements Overview

210 Balance Sheet Introduction

215 Balance Sheet Continued

220 Income Statement Overview

225 Income Statement Continued

230 Statement of Retained Earnings

235 Statement of Cash Flows

**Practice Probs – Financial Statements**

211 Earnings Per Share & Gross Profit

214 Operating Income

215 Income Statement Accounts

216 Make an Income Statement

218 Make an Income Statement Including Earning Per Share

223 Balance Sheet Current Noncurrent Classification

224 Balance Sheet & Income Statement Classification

225 Balance Sheet Alternative Formats

227 Retained Earnings & Earnings Per Share

230 Cash Flow Based on Account Activity

231 Depreciation and Cash Flow Statement

232 Free Cash Flow

233 Book Value Per Share

234 Book Value Per Share Earnings Per Share PE Ratio

237 Financial Statements Creation

238 Statement of Cash Flows

**Excel Probs – Financial Statement**

211 Earnings Per Share & Gross Profit

214 Operating Income

215 Income Statement Account Order

216 Make an Income Statement

218 Make an Income Statement Including Earning Per Share

220 Income Statement with Expense Unknown & Tax & Interest Expense Calculations

223 Balance Sheet Current Noncurrent Classification

224 Balance Sheet & Income Statement Classification

225 Balance Sheet Alternative Formats

226 Increase in Retained Earnings & Earnings Per Share

227 Retained Earnings & Earnings Per Share

228 Earning Per Share & Price to Earnings Ratio

230 Cash Flow Based on Account Activity

231 Depreciation and Cash Flow Statement

232 Free Cash Flow

233 Book Value Per Share

234 Book Value Per Share Earnings Per Share PE Ratio

235 Book Value Per Share Earnings Per Share PE Ratio # 2

237 Financial Statements Creation

238 Statement of Cash Flows

> Know how to use financial ratios to help make decisions from a corporate finance perspective

> Explain the Dupont System of Analysis

> Calculate and interpret profit margin percent

> Calculate and understand the return on investment (ROI)

> Calculate and explain total asset turnover

> Calculate and interpret expense to sales ratio

> Calculate and understand the return on assets and return on equity

> Calculate and explain the average accounts receivable collection period

> Calculate and understand the time’s interest earned and fixed charge coverage

> Explain return on equity trend analysis

> Use ratio analysis to compare divisions of an organization

> Project financial statements using ratio analysis

Financial Ratios

315 DuPont System of Analysis

Practice Probs – Financial Ratios

311 Profit Margin Percent

312 Return on Investment (ROI)

313 Return on Assets, Total Asset Turnover, & Profit Margin

314 Return on Investment, Total Asset Turnover, & Profit Margin

315 Profit Margin Two Years Comparison & Income Statement

317 Expense to Sales Ratios

318 Return on Assets, Return on Equity, & Asset Turnover

325 Total Asset Turnover & Return on Equity-More Complex Relationships

326 Total Asset Turnover, Return on Equity, & Profit Margin

327 Return on Equity & Other Ratios Two Company Comparison

328 Average AR Collection Period

331 Turnover Ratios Two Year Comparison

332 Multiple Ratio Calculations

332 Multiple Ratio Calculations

333 Times Interest Earned & Fixed Charge Coverage

337 Asset Turnover & Return on Equity Trend Analysis

338 Asset Turnover & Debt to Asset Compared to Industry

339 Net Profit Margin & ROA Division Comparison

342 Ratios to Create Current Assets Portion of Balance Sheet

343 Use Ratios to Create a Balance Sheet

344 Use Ratios to Create Account Balances

346 Comprehensive Ratio Analysis

347 P1 Comprehensive Ratio – Two Companies Part 1

347 P2 Comprehensive Ratio – Two Companies Part 2

311 Profit Margin Percent

312 Return on Investment (ROI)

313 Return on Assets, Total Asset Turnover, & Profit Margin

314 Return on Investment, Total Asset Turnover, & Profit Margin

315 Profit Margin Two Years Comparison & Income Statement

317 Expense to Sales Ratios

318 Return on Assets, Return on Equity, & Asset Turnover

325 Total Asset Turnover & Return on Equity-More Complex Relationships

326 Total Asset Turnover, Return on Equity, & Profit Margin

327 Return on Equity & Other Ratios Two Company Comparison

328 Average AR Collection Period

331 Turnover Ratios Two Year Comparison

332 Multiple Ratio Calculations

333 Times Interest Earned & Fixed Charge Coverage

337 Asset Turnover & Return on Equity Trend Analysis

338 Asset Turnover & Debt to Asset Compared to Industry

339 Net Profit Margin & ROA Division Comparison

342 Ratios to Create Current Assets Portion of Balance Sheet

343 Use Ratios to Create a Balance Sheet

344 Use Ratios to Create Account Balances

346 Comprehensive Ratio Analysis # 1

347 P1 Comprehensive Ratio – Two Companies

347 P2 Comprehensive Ratio – Two Companies Part 2

☑ Forecasting objectives

☑ How to construct a budget

☑ How to create a proforma income statement

☑ How to create a cash budget

☑ Ho to make a proforma balance sheet

☑ How to use a percentage of sales method

405 Forecasting Objectives

410 Pro Forma Income Statement

415 Cash Budget

420 Pro Forma Balance Sheet

425 Percent of Sales Method

414 Sales Projection – Multiple Scenarios

416 Estimated Net Sales

418 Projected Units to be Produced

423 Calculate Cost of Goods Sold Using FIFO & LIFO

424 Calculate Cost of Ending Inventory LIFO & FIFO

427 Schedule of Cash Receipts

428 Schedule of Cash Receipts – Multiple Scenarios

430 Schedule of Cash Payments

431 Schedule of Cash Payments – More Complex

432 Production Schedule & Schedule of Cash Payments

434 Cash Budget & Cash Receipts Schedule

435 Cash Budget, Cash Receipts Schedule, Cash Payments Schedule

437 Required New Fund Formula All Balance Sheet Accounts Change Relative to Sale

438 Required New Fund Formula – Current Assets & Liabilities Change Relative to

414 Sales Projection – Multiple Scenarios

416 Estimated Net Sales

418 Projected Units to be Produced

421 Calculate Cost of Goods Sold Using FIFO

423 Calculate Cost of Goods Sold Using LIFO & FIFO

427 Schedule of Cash Receipts

428 Schedule of Cash Receipts – Multiple Scenarios

430 Schedule of Cash Payments

431 Schedule of Cash Payments – More Complex

432 Production Schedule & Schedule of Cash Payments

434 Cash Budget & Cash Receipts Schedule

435 Cash Budget, Cash Receipts Schedule, Cash Payments Schedule

436 Cash Receipts, Cash Payments, & Cash Budget

437 Required New Fund Formula – All Balance Sheet Accounts Change Relative to Sale

438 Required New Fund Formula – Current Assets & Liabilities Change Relative to

☑ Be able to explain the concept of leverage and why it is important

☑ Be able to use break-even analysis for decision making

☑ Explain the concepts of the degree of operating leverage, financial leverage, & combined leverage

☑ Calculate the break-even point

☑ Calculate the cash break-even point

☑ Use nonlinear breakeven analysis

505 Leverage Overview

510 Break Even Analysis

515 Degree of Operating Leverage

520 Financial Leverage

525 Combined Leverage

511 Break Even Analysis

512 Break Even Point & Fixed & Variable Cost

515 Break Even Analysis Projection Plan

517 Cash Break Even Point

520 P1 Degree of Operating Leverage, Degree of Financial Leverage, & Combined Le

520 P2 Degree of Operating Leverage, Degree of Financial Leverage, & Combined Le

521 P1 Second Degree of Operating Leverage, Degree of Financial Leverage, & Comb

521 P2 Second Degree of Operating Leverage, Degree of Financial Leverage, & Co

522 Degree of Leverage Problem 1

523 Degree of Leverage Problem 2

524 Nonlinear Breakeven Analysis

525 Degree of Operating Leverage Alternative Formula

528 Price Earnings Ratio Comparison for Companies with Different Leverage

531 Leverage Ratios & Projected Expansion Scenarios

511 Break Even Analysis

512 Break Even Point & Fixed & Variable Cost

515 Break Even Analysis Projection Plan

517 Cash Break Even Point

520 P1 Degree of Operating Leverage, Degree of Financial Leverage, & Combined Le

520 P2 Degree of Operating Leverage, Degree of Financial Leverage, & Combined Le

521 P1 Second Degree of Operating Leverage, Degree of Financial Leverage, & Comb

521 P2 Second Degree of Operating Leverage, Degree of Financial Leverage, & Comb

522 Degree of Leverage Problem 1

523 Degree of Leverage Problem 2

524 Nonlinear Breakeven Analysis

525 Degree of Operating Leverage Alternative Formula

526 Financial Leverage & Earnings Per Share

527 Using Price to Earnings Ratio PE Ratio to Calculate Market Price

528 Price Earnings Ratio Comparison for Companies with Different Leverage

531 Leverage Ratios & Projected Expansion Scenarios

533 P1 Leverage Analysis Problem 1 Part 1

533 P2 Leverage Analysis Problem 1 Part 2

534 P1 Leverage Analysis Problem 2 Part 1

534 P2 Leverage Analysis Problem 2 Part 2

535 Financing Plans to Increase Assets

☑ Explain the nature of asset growth

☑ Discuss patterns of financing

☑ Estimate financing needs

☑ Compare short term financing and long term financing

☑ Understand equipment financing options

☑ Discuss asset mix and financing mix

☑ Analyze different financing strategies

☑ Calculate break-even point in interest rates

605 The Nature of Asset Growth

610 Patterns of Financing

611 Estimated Sales Values Estimated Sales Values

613 Estimating Financing Needed for Increase in Assets

615 Level Production vs Seasonal Production

617 Short Term Loan vs Long Term Loan

619 Equipment Short Term Financing vs Long Term Loan Financing

620 Asset & Financing Mix Options

622 Asset Mix & Financing Mix

624 Comparing Financing Strategies

625 Financing Strategies – Permanent & Temporary Assets

626 Expectations Hypothesis Theory for Expected Returns on Securities

629 Break-Even Point in Interest Rates

631 Level Production & Budgeted Cash Flow

611 Estimated Sales Values

613 Estimating Financing Needed for Increase in Assets

615 Level Production vs Seasonal Production

617 Short Term Loan vs Long Term Loan

619 Equipment Short Term Financing vs Long Term Loan Financing

620 Asset & Financing Mix Options

622 Asset Mix & Financing Mix

624 Comparing Financing Strategies

625 Financing Strategies – Permanent & Temporary Assets

626 Expectations Hypothesis Theory for Expected Return on Securities

629 Break-Even Point in Interest Rates

631 Level Production & Budgeted Cash Flow

☑ Be able to explain current asset management strategies and why they are important

☑ Describe cash management strategies

☑ Analyze accounts receivable management strategies

☑ Apply inventory management strategies

☑ Discuss marketable securities management

☑ Explain just in time inventory and its pros and cons

705 Management of Current Assets Introduction

710 Management of Cash

715 Cash Management International

720 Marketable Securities

725 Accounts Receivable Management

730 Inventory Management

735 Just-In-Time Inventory

711 Cash Management

713 Foreign Currency Cash Management

715 Accounts Receivable & Ave Collection Period

722 Economic Ordering Quantity (EOQ) Prob 1

726 Level vs Seasonal Production Decision

727 Customer Credit Policy Decision

731 Customer Credit Policy, Turnover Ratios, & ROI

732 Customer Payment Terms & Discount Policy

734 Customer Payment Terms & Discount Policy

711 Cash Management

713 Foreign Currency Cash Management

715 Accounts Receivable & Ave Collection Period

721 Accounts Receivable Aging

722 Economic Ordering Quantity (EOQ) Prob 1

724 Economic Ordering Quantity (EOQ) Prob 2

726 Level vs Seasonal Production Decision

727 Customer Credit Policy Decision

731 Customer Credit Policy, Turnover Ratios, & ROI

732 Customer Payment Terms & Discount Policy

734 Customer Payment Terms & Discount Policy

☑ List short term financing options

☑ Understand accounts payable financing strategy

☑ Explain bank credit options

☑ Define commercial paper financing and when it may be used

☑ Define collateral and explain how it may apply to short term financing

☑ Understand accounts receivable financing

☑ Explain inventory financing

805 Accounts Payable or Trade Credit

810 Credit from Bank

815 Commercial Paper Financing

820 Collateral & Short-Term Financing

825 Accounts Receivable Financing

830 Inventory Financing

810 Cost of Not Taking Cash Discount Calculation

812 Cost of Not Taking Cash Discount Example

814 Effective Interest Rate

816 Effective Rate on a Discounted Loan

818 LIBOR Loan Effective Interest Rate

819 Foreign Currency Borrowing & Effective Interest Rate

820 Interest or Dollar Cost of Loan Calculation

821 Net Credit Position

822 Compensating Balance Loan

825 Compensating Balance Loan with Idle Cash & Effective Interest

810 Cost of Not Taking Cash Discount Calculation

812 Cost of Not Taking Cash Discount Example

814 Effective Interest Rate

816 Effective Rate on a Discounted Loan

818 LIBOR Loan Effective Interest Rate

819 Foreign Currency Borrowing & Effective Interest Rate

820 Interest or Dollar Cost of Loan Calculation

821 Net Credit Position

822 Compensating Balance Loan

825 Compensating Balance Loan with Idle Cash & Effective Interest

> Explain what time value of money calculations are

> List common time value of money calculations

> Describe when the time value of money calculations are useful

> Compare multiple methods to calculate the time value of money

> Calculate the time value of money using mathematical formulas

> Calculate the time value of money using tables

> Calculate time value of money using Excel

> Work problems involving present value calculations

> Work problems involving the present value of annuity calculations

> Work problems involving future value calculations

> Work problems involving the future value of annuity calculations

910 Time Value of Money Overview

915 Present Value

920 Present Value Months as Period

923 Future Value

927 Future Value Months As Period

930 Future Value vs Present Value

933 Present Value Annuity

936 Present Value Annuity Months as Period

939 Future Value Annuity

942 Future Value Annuity Months

945 Present Value Cash Flow Examples

948 Future Value Cash Flow Examples

951 Present Value Terms Used In Capital Budgeting

954 Net Present Value Assumptions

911 Future Value FV Multiple Forms of Calculation

912 Present Value (PV) Calculation – Multiple Ways

915 Future Value Compounded Annually vs Semiannually

916 Present Value (PV) Decision Making

919 Present value Different Discount Rates Side by Side

920 Present Value Planning Scenario

921 Future Value of an Annuity

922 Future Value Uneven Investments

923 Present Value Annuity

926 Present Value Annuity

927 Present Value Uneven Payments

929 Future Value of a Collectible

930 Future Value of an Annuity

931 Future Value – How Long to Double or Triple Investments

933 Present Value – Estimate Stock Returns & Sale

935 Future Value – Compounded Quarterly

936 Future Value Compounded Annually, Quarterly, & Monthly

940 How Much to Invest to Reach Goal – One Investment vs Annuity

941 Use Annuity Calculation to Find Interest Rate

944 Use Annuity Calculation to Find Interest Rate

945 Use Annuity Calculation to Find Payment Amount

947 Retirement Scenario PV Annuity & FV Annuity

948 Present Value Uneven Payments

950 Deferred Annuity

952 FV of One & PV Annuity Loan – Uneven Repayment

954 Home Loan Payment Calculation

955 Future Value of Annuity Interest Rate Change

956 PV & FV of Annuity College Savings Plan Adjustment

911 Future Value FV Multiple Forms of Calculation

912 Present Value (PV) Calculation – Multiple Ways

915 Future Value Compounded Annually vs Semiannual

916 Present Value Decision Making

919 Present Value Different Discount Rates Side by Side

920 Present Value Planning Scenario

921 Future Value of an Annuity

922 Future Value Uneven Investments

923 Present Value Annuity

926 Present Value Annuity

927 Present Value Uneven Payments

930 Future Value of an Annuity

931 Future Value How Long to Double or Triple Investment

933 Present Value Estimate Stock Returns & Sale

935 Future Value Compounded Quarterly

936 Future Value Compounded Annually, Quarterly, & Monthly

938 Present Value of an Annuity Payments at Beginning of Period

939 Current Payment, Annuity, or Future Payment Alternatives

940 How Much to Invest to Reach Goal – One Investment vs Annuity

941 Future Value Calculate Investment Rate of Return

944 Use Annuity Calculate to Find Interest Rate

945 Use Annuity Calculation to Find Payment Amount

947 Retirement Scenario PV Annuity & FV Annuity

948 Present Value Uneven Payments

950 Deferred Annuity

952 FV of One & PV Annuity Loan – Uneven Repayment

954 Home Loan Payment Calculation

955 Future Value of Annuity Interest Rate Change

956 PV & FV of Annuity College Savings Plan Adjustment

☑ Explain valuation methods for financial assets

☑ Calculate the valuation of bonds

☑ Calculate the valuation of preferred stock

☑ Calculate the valuation of common stock

**Introduction**

1003 Financial Asset Valuation

1005 Bond Issued at Par

1010 Bonds Market Rate vs Contract Rate

1015 Issue bond at a discount%2C calculate%2C and record interest payment

1020 Bond Issued at Premium 7min

1025 Bonds Present Value Formulas

1030 Bond Price Present Value Tables

1035 Bond Price Excel Formula

1040 Preferred Stock Valuation

1045 Common Stock Valuation

**Practice Probs. – Valuation Bonds, Common Stock & Preferred Stock**

1011 Bond Value Different Yield Rates Prob 1

1012 Bond Value Different Yield Rates Prob 2

1014 Principal as a % of bond price

1015 Bond Value Different Maturity Dates

1018 Bond Sale Percentage Profit (ROI)

1020 Bond Sale Percentage Profit (ROI) Long Term Sale

1023 Calculate Bond Rate & Change in Rate

1025 Calculate Bond Rate & Change in Rate Prob. 2

1028 Find Bond Market Rate or Yield

1030 Find Bond market Rate or yield Semiannual

1031 Bond Value Semiannual Payments

1032 Bond Value Semiannual Rate Change

**Excel Probs. – Valuation Bonds, Common Stock & Preferred Stock**

1011 Bond Value Different Yield Rates Prob 1

1012 Bond Value Different Yield Rates Prob 2

1014 Principal as a % of bond price

1015 Bond Value Different Maturity Dates

1018 Bond Sale Percentage Profit (ROI)

1020 Bond Sale Percentage Profit (ROI) Long Term Sale

1023 Calculate Bond Rate & Change in Rate

1025 Find Bond Market Rate or Yield

1028 Calculate Bond Rate & Change in Rate Prob. 2

1030 Find Bond Market Rate or Yield Semiannual

1031 Bond Value Semiannual Payments

1032 Bond Value Semiannual Rate Change

1034 Preferred Stock Value

1036 Preferred Stock Yield or Rate of Return

1037 Common Stock Price No Growth Assumed

1038 Common Stock Value Calculate Stable Growth 9min

1041 Estimated Earnings Per Share & Dividends

1042 Common Stock Rate of Return Constant Growth Rate

1044 Common Stock Value Multiple Methods

☑ Calculate the weighted average cost of capital (WACC)

☑ Calculate the cost of debt

☑ Calculate the cost of preferred stock

☑ Calculate the cost of common stock

☑ Explain the optimal company capital structure

☑ Understand how taxes impact the cost of capital decision

**Introduction**

1105 Cost of Capital Debt Equity Financing Overview

1110 Weighted Average Cost of Capital WACC

1115 Cost of Debt

1120 Cost of Preferred Stock

1125 Cost of Common Equity

1130 The Optimal Capital Structure

**Practice Probs. – The Cost of Capital – Debt / Equity Financing**

1114 Cost of Debt After-Tax Prob 1

1115 Cost of Debt After-Tax Prob. 2

1117 Cost of Debt After Tax Interest Rate Calculation

1119 Cost of Debt After Tax Interest Rate Calculation

1120 Calculate Change in Cost of Debt After-tax Due to Reduced Tax Rates

1123 Cost of Preferred Stock Percent

1126 Financing Common Stock Prob 1

1127 Financing Common Stock Prob. 2

**Excel Probs. – The Cost of Capital – Debt / Equity Financing**

1112 Weighted Average Cost of Capital (WACC)

1114 Cost of Debt After-Tax Prob 1

1115 Cost of Debt After-Tax Prob 2

1117 Cost of Debt After Tax Interest Rate Calculation

1119 Calculate Bond After-Tax Cost to Issue

1120 Calculate Change in Cost of Debt After-Tax Due to Reduced Tax Rates

1123 Cost of Preferred Stock Percent

1124 Calculate Preferred Stock Current Yield

1125 Financing Debt vs Preferred Stock

1126 Financing Common Stock Prob 1

1127 Financing Common Stock Prob 2

☑ Explain how to make capital budgeting decisions

☑ Discuss the common scenarios related to capital budgeting decisions

☑ Calculate the net present value (NPV) for a capital budgeting decision

☑ Calculate the internal rate of return (IRR) for a capital budgeting decision

☑ Calculate the payback period for a capital budgeting decision

☑ Calculate the modified internal rate of return (MIRR)

☑ Compare capital budgeting projects

1205 Capital Budgeting Decision Overview

1210 Payback Period

1215 Net Present Value (NPV)

1220 Internal Rate of Return (IRR)

1225 Project Selection Process

1230 Modified Internal Rate of Return (MIRR)

1235 Fixed Asset Replacement Decision

1211 Cash Flow Calculation

1213 Cash Flow Impact of Depreciation Due to Taxes

1214 Cash Flow Impact of Tax Rate Change

1216 Payback Period

1217 Payback Period Comparing Projects of Different Lengths

1219 Payback Period Time Value of Money Limitation

1220 Net Present Value (NPV) vs Payback Period

1221 Internal Rate of Return (IRR) Problem 1

1222 Internal Rate of Return (IRR) Problem 2

1223 Internal Rate of Return (IRR) Uneven Future Inflows

1224 Net Present Value (NPV) With Negative Future Outflow

1225 Net Present Value (NPV) With Closing Cost

1226 Net Present Value (NPV) Delayed Payments

1227 Net Present Value (NPV) vs Internal Rate of Return (IRR) Prob. 1

1228 Net Present Value (NPV) vs Internal Rate of Return (IRR) Prob. 2

1229 Profitability Index

1230 Capital Budgeting with Reinvestment Rate Assumption

1231 Modified Internal Rate of Return (MIRR)

1234 Net Present Value Changing Discount Rate

1235 MACRS Depreciation, Cash Flow, & Net Present Value Prob. 1

1237 MACRS Depreciation, Cash Flow, & Net Present Value Prob. 2

1238 5 Year MACRS Depreciation, Cash Flow, & Net Present Value

1239 7 MACRS Depreciation, 10 Year Cash Flow, & Net Present Value

1240 Land & 5 MACRS Depreciation, Cash Flow, & Net Present Value

1241 Sales of Depreciated Assets & Tax Impact

1211 Cash Flow Calculation

1213 Cash Flow Impact of Depreciation Due to Taxes

1214 Cash Flow Impact of Tax Rate Change

1216 Payback Period

1217 Payback Period Comparing Projects of Different Lengths

1219 Payback Period Time Value of Money Limitation

1220 Net Present Value (NPV) vs Payback Period

1221 Internal Rate of Return (IRR) Problem 1

1222 Internal Rate of Return (IRR) Problem 2

1223 Internal Rate of Return (IRR) Uneven Future Inflows

1224 Net Present Value (NPV) With Negative Future Outflow

1225 Net Present Value (NPV) With Closing Cost

1226 Net Present Value (NPV) Delayed Payments

1227 Net Present Value (NPV) vs Internal Rate of Return (IRR) Prob. 1

1228 Net Present Value (NPV) vs Internal Rate of Return (IRR) Prob. 2

1229 Profitability Index

1230 Capital Budgeting with Reinvestment Rate Assumption

1231 Modified Internal Rate of Return (MIRR)

1234 Net Present Value Changing Discount Rate

1235 MACRS Depreciation, Cash Flow, & Net Present Value Prob. 1

1237 MACRS Depreciation, Cash Flow, & Net Present Value Prob. 2

1238 6 Year MACRS Depreciation, Cash Flow, & Net Present Value

1239 7 MACRS Depreciation, 10 Year Cash Flow, & Net Present Value

1240 Land & 5 MACRS Depreciation, Cash Flow, & Net Present Value

1241 Sales of Depreciated Assets & Taxes Impact

1242 5 Year MACRS Depreciation, WACC, Cash Flow, & Net Present Value

1243 Buy New Fixed Asset or Keep Old Decision

☑ List and define risk management tools that relate to capital budgeting and investment decisions

☑ Explain the concept of population mean and expected value

☑ Discuss the term population variance and how it can apply to capital budgeting decisions

☑ Describe standard deviation and how it can apply to capital budgeting decisions

☑ Explain the concept of coefficient of variation and how it can be used to measure risk in the capital budgeting decision-making process

☑ Define simulation models and how they can be useful in capital budgeting decisions

☑ Discuss how capital budgeting decisions should take into consideration the overall investment portfolio

1310 Capital Budget Risk Overview

1315 Measure of Risk

1320 Risk & Discount Rates

1325 Simulation Models

1330 Investment Impact on Portfolio

1300 Standard Deviation, Variance, & Coefficient of Variation

1312 Standard Deviation, Variance, & Coefficient of Variation

1313 Expected Value, Standard Deviation, & Coefficient of Variation Prob. 2

1314 Expected Value, Standard Deviation, & Coefficient of Variation Prob. 3

1316 Coefficient of Variation Three Investment Alternatives

1318 Coefficient of Variation & Investment Risk

1322 Coefficient of variation Two Project Alternatives

1326 Expected Value & Net Present Value Even Yearly Cash Flows

1328 Expected Value & Coefficient of Variation Investment Options

1329 Expected Value in Capital Budgeting Decision Uneven Payments

1331 Expected Value for Multiple Years & NPV

1300 Standard Deviation, Variance, & Coefficient of Variation

1312 Expected Value, Standard Deviation, & Coefficient of Variation Prob. 1

1313 Expected Value, Standard Deviation, & Coefficient of Variation Prob. 2

1314 Expected Value, Standard Deviation, & Coefficient of Variation Prob. 3

1316 Coefficient of Variation Three Investment Alternatives

1318 Coefficient of Variation & Investment Risk

1322 Expected Value & Net Present Value Even Yearly Cash Flows

1328 Expected Value & Coefficient of Variation Investment Options

1329 Expected Value in Capital Budgeting Decision Uneven Payments

1331 Expected Value for Multiple Years & NPV

☑ Define capital markets

☑ Describe government securities

☑ Explain what corporate securities are

☑ Describe the role exchanges play

☑ Explain the concept of market efficiency

☑ List and describe security markets regulations

☑ Describe the role of investment bankers

☑ Compare public and private financing

☑ Explain what long term debt financing is

☑ Describe bond prices, yields, and bond ratings and how they are used in decision making

1405 Capital Markets Overview

1410 Government Securities

1415 Corporate Securities

1420 Exchanges

1425 Market Efficiency

1430 Security Markets Regulation

1505 Investment Banking Overview

1510 Pricing the Security and Dilution

1515 Public vs Private Financing

1610 Long Term Debt & Lease Financing Overview

1615 Bond Prices, Yields, & Ratings

1620 Bond Refunding Decision

1625 Other Forms of Bond Financing

1630 Debt Pros & Cons 4min

1635 Leasing as a Form of Debt Financing

1611 Bond Coupon Rate, Current Yield, and Yield to Maturity

1614 Bond Coupon Rate, Current Yield, and Yield to Maturity Comparison

1616 Calculate Multiple Bond Value

1617 Debenture that is Callable Price Calculation

1618 Impact of Bond Rating Change on Bond Price

1621 Zero Coupon Rate Bond Price Calculation

1622 Zero Coupon Bond Effective Yield to Maturity

1624 Impact of Inflation on Borrowing

1625 Bond Purchase on Margin & Then Sold

1627 Bond Refunding Decision Prob. 1

1628 Bond Refunding Decision Prob. 2

1630 Capital Lease vs Operating Lease Determination

1631 Capital Lease vs Operating Lease Balance Sheet Impact

1611 Bond Coupon Rate, Current Yield, and Yield to Maturity

1614 Bond Coupon Rate, Current Yield, and Yield to Maturity Comparison

1616 Calculate Multiple Bond Value

1617 Debenture that is Callable Price Calculation

1618 Impact of Bond Rating Change on Bond Price

1621 Zero Coupon Rate Bond Price Calculations

1622 Zero Coupon bond Effective Yield to Maturity

1624 Impact of Inflation on Borrowing

1625 Bond Purchase on Margin & Then Sold

1627 Bond Refinancing Decision Prob 1

1628 Bond Refinancing Decision Prob 2

1630 Capital Lease vs Operating Lease Determination

1631 Capital Lease vs Operating Lease Balance Sheet Impact

1632 Size of Lease Payment Calculation

☑ Explain corporate financing options

☑ Define and explain the concept of a poison pill as it relates to corporate finance

☑ Define American Depository Receipts (ADRs) and how they are used

☑ Describe majority voting and cumulative voting

☑ Calculate the number of shares required to be able to elect a certain number of board members using cumulative voting

☑ Calculate the number of board members that can be elected given a set number of shares using cumulative voting

☑ Calculate stock rights value

☑ Calculate preferred dividends in arrears

1710 Financing with Common Stock & Preferred Stock Overview

1715 Use of Rights in Financing Company

1716 Poison Pills

1720 American Depository Receipts (ADR)

1725 Preferred Stock Financing

1711 Residual Claims to Earnings

1712 Poison Pill

1713 Cumulative Voting Prob. 1

1714 Cumulative Voting Prob. 2

1715 Cumulative Voting Prob. 3

1716 Cumulative Voting How Many Directors Can We Elect

1718 Dissident Stockholder Group Cumulative Voting Multiple Scenarios

1721 Rights Offering Introduction Problem

1722 Rights Offering Rights Valuation Calculation

1723 Rights Offering – Shares that Could be Acquired Calculation

1724 Stock Rights Investing Scenario

1725 Rights Impact on Asset Position

1726 Rights Offering, EPS, & Price Earnings Ratio

1727 Investment Options Including Preferred Stock Tax Impact

1728 Preferred Dividends in Arrears

1729 Dividends in Arrears Paid Off Through Issuing Bonds

1730 Dividends in Arrears Paid Off Through Issuing Stock

1731 Preferred Stock Borrow & Invest Decision

1732 Preferred Stock Floating Rate

1711 Residual Claims to Earnings

1712 Poison Pill

1713 Cumulative Voting Prob. 1

1714 Cumulative Voting Prob. 2

1715 Cumulative Voting Prob. 3

1716 Cumulative Voting How Many Directors Can We Elect

1718 Dissident Stockholder Group Cumulative Voting Multiple Scenarios

1721 Rights Offering Introduction Problem

1722 Rights Offering Rights Valuation Calculation

1723 Rights Offering – Shares that Could be Acquired Calculation

1724 Stock Rights Investing Scenario

1725 Rights Impact on Asset Position

1726 Rights Offering, EPS, & Price Earnings Ratio

1727 Investment Options Including Preferred Stock Tax Impact

1728 Preferred Dividends in Arrears

1729 Dividends in Arrears Paid Off Through Issuing Bonds

1730 Dividends in Arrears Paid Off Through Issuing Stock

1731 Preferred Stock Borrow & Invest Decision

1732 Preferred Stock Floating Rate

☑ Explain the factors involved when making corporate dividend policy decisions

☑ Describe dividend policy as it relates to phases in the corporate life cycle

☑ Discuss the impact shareholders have on dividend policy

☑ Explain dividend payment terms

☑ Compare stock dividends and cash dividends

☑ Describe when a company may use stock dividends

☑ Discuss the concept of a stock split

☑ Explain when a company may use a stock split

1805 Dividend Policy

1810 Other Things That Impact Dividend Policy

1815 Dividend Payment Terms

1820 Stock Dividend

1825 Stock Split

1813 Payout Ratio

1814 Payout Ratio, Dividends Per Share, Dividend Yield

1816 Retained Earnings & Dividend Limits

1817 Dividend Projection Life Cycle

1818 Stock Split & Stock Dividend

1819 Dividend Payout Policy Analysis

1820 Annual Dividend Yield, EPS, & Price Earnings Ratio

1821 Earnings Per Share, Dividends Per Share, & Dividend Yield

1822 Ex-Dividend Stock Price

1823 Stock Dividend & Cash Dividend Impact on Equity Section

1825 Dividends vs Investment Analysis

1826 Dividend Policy Impact on Price or Stock Value

1827 Stock Split 3 for 1 and 2 for 1

1828 Stock Dividend Impact on Equity & Investor Value

1829 Stock Dividend & Impact on Investor Holdings

1830 Reverse Stock Split

1831 Stock Repurchase vs Cash Dividend

1832 Dividend Payment Policy

1813 Payout Ratio

1814 Payout Ratio, Dividends Per Share, Dividend Yield

1816 Retained Earnings & Dividend Limits

1817 Dividend Projection Life Cycle

1818 Stock Split & Stock Dividend

1819 Dividend Payout Policy Analysis

1820 Annual Dividend Yield, EPS, & Price Earnings Ratio

1821 Earnings Per Share, Dividends Per Share, & Dividend Yield

1822 Ex-Dividend Stock Price

1823 Stock Dividend & Cash Dividend Impact on Equity Section

1825 Dividends vs Investment Analysis

1826 Dividend Policy on Price of Stock Valuation

1827 Stock Split 3 for 1 and 2 for 1

1828 Stock Dividend Impact on Equity & Investor Value

1829 Stock Dividend & Impact on Investor Holdings

1830 Reverse Stock Split

1831 Stock Repurchase vs Cash Dividend

1832 Dividend Payment Policy

☑ List common convertible securities

☑ Explain what convertible securities are

☑ Explain what warrants and how that can be used

☑ Describe derivative securities

☑ Calculate warrant intrinsic value

☑ Calculate warrant speculation premium

☑ Calculate convertible bond conversion value

☑ Calculate convertible bond conversion premium

☑ Calculate the convertible bond pure bond value

1905 Convertible Securities

1910 Warrants

1915 Derivative Securities

1911 Warrants Intrinsic Value & Speculation Premium

1913 Warrants Break-Even Price

1916 Convertible Bond Conversion Value & Conversion Premium

1917 Convertible Bond Price & Conversion Value

1919 Convertible Bond on Exchange

1920 Convertible Bond Pure Bond Value vs Market Price Prob. 1

1921 Convertible Bond Pure Bond Value vs Market Price Prob. 2

1922 Convertible Bond Change in Price & Conversion Premium

1923 Convertible Bond Crossover Point – Conversion Value Equals Pure Bond Value

1924 Convertible Bonds & Call Feature

1925 Convertible Bond Sale, Gain, & Rate of Return

1926 Warrant vs Stock Price % Increase

1927 Warrant Exercise & Rate of Return Calculations

1928 Exercise Warrant Gain vs Common Stock Gain

1929 Warrant Gain vs Stock Gain – Same Investment Amount

1930 Convertible Bonds & Diluted Earnings Per Share

1931 Convertible Bonds – Pure Bond value Impact vs Conversion Value Impact on Pr

1933 Convertible Bonds Pure Bond Value & Falling Stock Price

1911 Warrants Intrinsic Value & Speculation Premium

1913 Warrants Break-Even Price

1916 Convertible Bond Conversion Value & Conversion Premium

1917 Convertible Bond Price & Conversion Value

1919 Convertible Bond on Exchange

1920 Convertible Bond Pure Bond Value vs Market Price Prob 1

1921 Convertible Bond Pure Bond Value vs Market Price Prob 2

1922 Convertible Bond Change in Price & Conversion Premium

1923 Convertible Bond Crossover Point – Conversion Value Equals Pure Bond Value

1924 Convertible Bonds & Call Feature

1925 Convertible Bond Sale, Gain, & Rate of Return

1926 Warrant vs Stock Price % Increase

1927 Warrant Exercise & Rate of Return Calculations

1928 Exercise Warrant Gain vs Common Stock Gain

1929 Warrant Gain vs Stock Gain – Same Investment Amount

1930 Convertible Bonds & Diluted Earnings Per Share

1931 Convertible Bonds Pure Bond Value Impact vs Conversion Value Impact on Price

1933 Convertible Bonds Pure Bond Value & Falling Stock Price

> Explain what mergers & acquisitions are

> Contrast cash acquisition vs stock acquisition

> Discuss business combination methods

> Explain the concept of goodwill and how it relates to acquisitions

> Describe how a tender offer works

> Discuss how a tax loss carryover can impact an acquisition

> Calculate the impact on earnings per share of an acquisition

> Describe common foreign currency transactions

> Explain what a forward exchange contract is

> Record transactions for purchases and sales involving foreign currency

> Describe how a forward contract can be used as a hedge against currency exchange risk

2005 Mergers & Acquisitions Overview

2010 Cash Acquisition & Stock for Stock Acquisition

2015 Business Combinations Methods

2020 Acquisition Accounting Goodwill

2025 Tender Offer

2010 Acquisition & Tax Carryover with Even Inflows

2012 Acquisition & Tax Carryover Spread Over Multiple Years

2013 Acquisition Uneven Returns Prob. 1

2014 Acquisition Uneven Returns Prob. 2

2015 Merger & Earnings Per Share

2017 Acquisition & Earnings Per Share

2018 Acquisition in Two Steps

2019 Owner Sells Interest & Tax Obligations

2020 Offer of Acquisition & Impact on Stock Price

2022 Acquisition, Expected Value, Standard Deviation, & Coefficient of Variation

1110 Foreign Currency Exchange Rates

1120 Foreign Currency Transactions

1125 Forward Exchange Financial Instruments

1130 Forward Exchange Contracts

1133 Purchases & Sales Involving Foreign Currency

1138 P2 Forward Contract to Hedge Commitment Agreement to Purchase

1138 P3 Forward Contract as a Cash Flow Hedge

1138 P4 Forward Contract for Speculative Purposes Only

1133 Purchases & Sales Involving Foreign Currency

1138 P1 Forward Contract to Manage Foreign Currency Risk from Purchase

1138 P2 Forward Contract to Hedge Commitment Agreement to Purchase

1138 P3 Forward Contract as a Cash Flow Hedge

1138 P4 Forward Contract for Speculative Purposes Only