Finance for Executives (CEMS, CIMA) 238141-D
Ćwiczenia (CW) Semestr letni 2023/24

Introduction to corporate finance; firm's objectives; owners vs. other stakeholders; operating vs. financial activities.

Financial statements: balance sheet, profit and loss account, cash flow statements.

Managerial financial statements; invested capital; net operating profit after tax; interest tax saving.

Annual financial performance evaluation; return on invested capital (ROIC, ROCE); Dupont analysis, ratio analysis.

Working capital management; liquidity vs. capital requirement; working capital financing startegies.

Time value of money; nominal vs. real interest rates; simple and compound interest; present and future values; annuity.

Bond valuation; types of debt financing; yield to maturity; credit rating; bond price determinants.

Equity valuation; EPS; DPS; retention and payout ratios; dividend discount models; PER valuation.

Enterprise valuation; free cash flows; cost of capital; real options.

Investment appraisal; incremental cash flows; NPV rule; project's rate of return rule; ARR; profitability index.

Internal rate of return; IRR vs. NPV; other investment appraisal methods; taxation and inflation; capital rationing.

Risk-return trade off; decision trees; sensitivity and simulation; portfolio theory; CAPM.

Weighted average cost of capital (WACC); operating vs. financial leverage; ROE and ROIC vs. financial leverage.

Cost of capital vs. enterprise value; Miller-Modigliani models.

Estimation of cost of capital in real life applications.