MBAA 6070 Managing Financial Resources
Slides are meant as a template for lectures and should not be used in lieu of coming to class. Slides are constructed based on topics from Ross, Westerfield, and Jordan Fundamentals of Corporate Finance.
Problem Set 1 Problem Set 2 Problem Set 3 Problem Set 4 Final Topics Oral Exam OverviewModule 1: Introduction, Financial Statements, and Analysis
Topic 1: Introduction to Finance
We will introduce the concept of corporate finance. Topics covered include: financial management decisions, business organizations, goal of financial management, agency costs, and the flow of cash.
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Topic 2: Financial Statement Review
This is largely a review of financial statements. It covers key concepts and terms from the balance sheet, income statement, and cash flow statement. We also introduce the concept and calculation of free cash flow.
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Topic 3: Financial Statement Analysis
This lecture covers the calculation and understanding of standardized financial statements and financial ratio. Students will be able to analyze firm performance by examining trends and comparing with competitors (or peers)..
View Slides Printer Friendly Slides Financial Ratios Topics for Quiz Practice ProblemsModule 2: Time Value of Money
Topic 1: Introduction to Valuation
This topic introduces the most important topic and skill in this course -- Time Value of Money. You will learn the basics of calculating present value, future value, discount rate, and number of periods.
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Topic 2: Discounted Cash Flow Valuation
In this topic we will extend our discussion on Time Value of Money. We will add (un)even cash flows to the calculations. We will also cover annuities, perpetuities, including a growth rate, EAR vs APR, and briefly discuss loan types.
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Topic 1: Interest Rates and Bond Valuation
This topic will discuss bonds. Including valuation, terms, types, ratings and term structure. We will also discuss real vs nominal rates.
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Topic 2: Stock Valuation
This chapter covers stock valuation. We will introduce the concepts of intrinsic and relative valuation and valuation tools such as Dividend Growth Model and Trading Multiples. Common terms and features associated with stocks and the stock markets are also covered.
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Optional Extra: Relative Valuation: Multiples
Introduction to relative valuation using multiples. Includes discussion of selecting trading or transaction comparables, using several common multiples, and calculating LTM. Also introduces estimation of excess cash. Students will be able to perform company valuation using the multiples (aka, comparables) approach.
View Slides Printer Friendly SlidesModule 4: Capital Budgeting Tools
Topic 1: Capital Budgeting Tools
This module will use the our Time Value of Money skills to evaluate potential investments. We will cover capital budgeting tools such as Net Present Value, Payback Period, and Internal Rate of Return. We will cover calculation as well as the correct decision criteria. Non-conventional cash flows and mutually exclusive projects are also discussed.
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Topic 1: Making Capital Investment Decisions
In this module we will learn how to calculate expected future cash flows for a project. Topics include incremental cash flows, sunk costs, opportunity costs, depreciation, and pro forma financial statements.
View Slides Printer Friendly Slides Topics for Quiz Practice ProblemsModule 6: Risk, Return, and the Cost of Capital
Topic 1: Risk and Return
An introduction to risk and return. We cover average vs Geometric return, the efficient market hypothesis, calculation of portfolio returns and variances, diversification and the capital asset pricing model (CAPM).
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Topic 2: Cost of Capital
A brief introduction to cost of capital and the calculation of weighted average cost of capital (WACC).
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