|
Subject and tasks of corporate finance. Theory of three focuses - economic, financial and resources approach to management. Basic elements of enterprise financial position described by income statement, balance sheet and cash flows report. Financial goals of enterprise.
Time value of money. Future value at various models of capitalization. Discounting at fixed and variable interest rate. Financial decisions.
Cost of capital vs. investment?s rate of return. Capital Assets Pricing Model. Risk factor Beta. Gordon?s Model. Weighted Average Cost of Capital.
Utilization of streams and structure of cash flows within corporate finance (ex ante i ex post analysis). Working capital in the meaning of cash flows - receivables, inventory, cash, short term liabilities.
Factoring and securitization.
Investment decisions. Discounted methods of investment project evaluation (NPV, IRR, PP etc.).
Operational risk and financial risk. Operational and financial leverage. Strategies of assets financing. Net working capital.
Extended Du Pont Model and theories of optimal capital structures. Tax effects vs. bankruptcy risk and cost.
Sources and forms capital acquisition. Debt financing - obligations, short term commercial papers, leasing (civil low, tax and accounting regulations), equity external financing - private equity, venture capital, self-financing, hybrid financing - mezzanine finance, financial future transactions.
Operational budgeting. Capital budgeting.
Estimation of corporation value.
Factors affecting business value. Management by value creation (measurers of MVA, EVA).
|
