Corporate Finance Management – From Beginner to Advanced

Types of Financing, Ratio Analysis, Time Value of Money, Cost of Capital, Capital Structure, Leverage, Capital Budgeting

Created by: Akshata M
Chartered Accountant

What Will I Learn?

• Understand Meaning and Concepts of Finance Management
• Identify and understand different Sources of Finance and Types
• Types of Long Term and Medium Term finance
• Types of Equity Share Capital and Preference share capital
• What is Debentures/ Bonds ? Types of Debentures and Bonds
• Venture Capital Financing
• Asset Securitisation
• Lease Financing - Explanation of concept and types of lease
• Depository Receipts - ADR (American Depository Receipts), GDR (Global Depository Receipts) , IDR (Indian Depository Receipts))
• Trade Credit
• Accrued Expenses
• Deferred Income and advance from customers
• Short Term Bank advances and its types
• Bridge Financing
• Commercial Paper
• Treasury bills and Certificate of Deposits
• Different Types of Financial Ratios - Calculation and Analysis along with illustrations
• Types of Liquidity Ratios / Short Term solvency Ratios - Calculation and analysis along with illustrations
• Current Ratios
• Quick Ratio / Acid Test Ratio
• Cash Ratio / Absolute Liquidity Ratio
• Interval Measure Ratio
• Types of Leverage Ratios / Long Term solvency ratios - Calculation and analysis along with illustrations
• Equity Ratios
• Debt Ratio
• Debt To Equity Ratios
• Debt To Total Assets ratios
• Proprietary Ratio
• Capital Gearing Ratio
• Debt Service Coverage Ratio
• Dividend Coverage Ratio
• Interest Coverage Ratio
• Fixed Charges Coverage Ratio
• Types of Activity Ratios / Turnover Ratios/ Efficiency Ratios / Performance Ratios - Calculation and analysis along with illustrations
• Total Assets Turnover Ratio
• Fixed Assets Turnover Ratio
• Net Assets Turnover Ratio
• Current Assets Turnover Ratio
• Working Capital Turnover Ratio
• Inventory Turnover Ratio
• Receivables Turnover Ratio
• Payables Turnover Ratio
• Profitability Ratios - Calculation and analysis along with illustrations
• Gross Profit Ratio
• Net Profit Ratio
• Operating Profit Ratio
• Expenses Ratio - COGS Ratio, Office and Administration Expenses Ratio, Selling and Distribution Expenses Ratio, Operating Expenses Ratio
• Return on Investment (ROI)
• Return on Asset (ROA)
• Return on Capital Employed (ROCE)
• Return on Equity (ROE)
• DuPont Analysis on ROI, ROA and ROE
• Earning Per Share (EPS)
• Dividend Per Share (DPS)
• Dividend Payout Ratio
• Price Earning Ratio
• Dividend and Earning Yield Ratio
• Market Value by Book Value (MVBV)
• Q ratio
• Time Value of Money - Concept and Use of Time value of Money
• Simple Interest and Power of Compounding
• Present Value and Future Value of Single Cash Flow
• What is Annuity and Types of Annuity
• Present Value and Future Value of Annuity
• Annuity Factor and Discount Factor
• Internal Rate of Return (IRR)
• Cost of Capital
• Cost of Redeemable and Irredeemable Debts
• Cost of Zero Coupon Bonds using IRR method
• Cost of Ammortised Bonds using IRR Method
• Methods to Calculate cost of Equity
• Gordon's Growth Model
• Capital Asset Pricing Model (CAPM)
• Cost of Preference Shares
• Weighted average cost of Capital
• Marginal Cost of Capital
• What is Leverage ?
• Operating Leverage, Financial Leverage and Combined Leverage
• Break even Analysis- Operating Break even Point and Financial Break even point
• Margin of Safety and Operating Leverage
• Financial Leverage - Trading on Equity
• Financial Leverage - Double edge Sword
• Capital Structure Meaning and Theories
• Net Income Approach
• Traditional Approach
• Net Operating Income Approach
• Modigliani and Miller Approach
• Arbitrage - Meaning and illustrations
• Trade off Theory
• Pecking Theory
• EBIT- EPS - MP analysis
• Return on Asset , Fixed Costs and EPS analysis
• Financial Break even analysis
• Indifference Points
• Over Capitalisation and Under Capitalisation
• Capital Budgeting - Meaning and Process
• Types of Capital Investment decisions
• Replacement and Modernization decision
• Expansion Decision
• Diversification Decision
• Mutually Exclusive Proposals Decision
• Accept or Reject Decision
• Contingent Decision
• Difference between Accounting Profit and Cashflow
• Meaning of Incremental Cashflows
• Depreciation and Tax Benefit on Depreciation
• Opportunity Cost and Sunk Cost
• Working Capital Cost
• Allocated Overhead costs
• Types of Cashflow for New Projects and Replacement Projects
• How to Calculate Cashflows
• Block of Assets and Depreciation Principle
• Treatment of Financing Costs
• Post Tax Principles
• Capital Budgeting Techniques
• Payback Period Method - Meaning, Illustrations advantages and Disadvantages
• Payback Period Reciprocal Method
• Accounting Rate of Return Method (ARR) - Meaning, Illustrations advantages and Disadvantages
• Discounted Payback Period Method - Meaning, Illustrations advantages and Disadvantages
• Profitability Index Method (PI) - Meaning, Illustrations advantages and Disadvantages
• Net Present Value Method (NPV) - Meaning, Illustrations advantages and Disadvantages
• Internal Rate of Return (IRR) - Meaning, Illustrations advantages and Disadvantages
• Internal Rate of Return (IRR) and Net Present Value Method (NPV) Reinvestment Assumption
• Multiple Internal Rate of Return (Multiple IRR)
• Modified Internal Rate of Return (MIRR) - Meaning, Illustrations advantages and Disadvantages
• Capital Rationing
• Divisible and Non- Divisible Projects
• Methods to analyze Mutually Exclusive Projects with different tenures
• Replacement Chain Method
• Equivalent Annualized Criterion Method
• Risk analysis in Capital Budgeting
• Project Specific Risk
• Company Specific Risk
• Industry Specific Risk
• Competition risk
• Risk due to economic factors
• International risk
• Market risk
• Types of Risk Analysis Techniques
• Risk Analysis Technique - Statistical Technique - Probability
• Risk Analysis Technique - Statistical Technique - Standard deviation and Variance
• Risk Analysis Technique - Statistical Technique - Coefficient of Variation
• Risk Analysis Technique - Conventional Technique - Risk adjusted discount Rate
• Risk Analysis Technique - Conventional Technique - Certainty Equivalent
• Risk Analysis Technique - Sensitivity Analysis
• Risk Analysis Technique - Scenario Analysis
• Dividend decisions - Introduction and significance
• Forms of Dividend - Cash Dividend and Bonus Shares (Stock Dividend)
• Relationship between Retained earnings and Growth
• Factors affecting Dividend decisions
• Dividend Policy - Mature Company and Growth Company
• Theories of Dividend Policy
• Modigliani and Miller Hypothesis
• Walter's Model
• Gordon's Growth Model
• Dividend Discount Model
• Graham and Dodd Model
• Linter's Model
• Stock Splits
• Meaning ,Significance and Types of Working Capital
• Optimum Working Capital
• Approaches for Working Capital Investment
• Working Capital Cycle or Operating Cycle - Concept and calculation
• Raw Material Storage Period
• Work in Progress holding period
• Finished Goods Storage Period
• Receivables Collection Period
• Payables Period
• Working Capital Estimation
• Working Capital on Cash cost basis
• Impact of Double Shift on Working Capital
• Treasury and Cash Management
• Cash Budget
• Accelerating Cash Collections and Controlling Payments
• Cash Management Models
• William J Baumol EOQ Model
• Miller Orr Cash Management Model
• Management of Marketable securities
• Inventory Management Basics
• Reorder Level
• Reorder Quantity
• Minimum Stock Level
• Maximum Stock Level
• Average Stock Level
• Danger Level and Buffer Stock
• Management of Debtors - Meaning and Objective
• Factors determining Credit Policy
• Approaches to evaluation of credit policies - Total Approach and Incremental Approach
• Financing Receivables
• Factoring Services evaluation
• Forfaiting
• Management of Payables and Cost of Payables
• Working Capital Finance
• Spontaneous Sources of Finance
• Inter Corporate Loans and Deposits
• Commercial Papers
• Bills Discounting, Rediscounting and Factoring
• Forms of Bank Credit

Requirements

• Basics Terms related to Accountancy and Finance will be helpful

Target audience

• Students pursuing Bachelor of Commerce
• Students pursuing Chartered Accountancy course
• Professionals who want to upgrade their knowledge in Finance management - Corporate Finance