Westcliff University Economics Financial Statements Presentation
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Introduction to Corporate Finance: This topic gives a general overview of the core ideas and concepts in corporate finance, such as the significance of financial decisions, the function of financial managers, and the objective of maximising shareholder wealth.
Cash Flows, Taxes, and Financial Statements: It is essential to comprehend financial statements, their components (such as balance sheets, income statements, and cash flow statements), and how they relate to cash flows and taxes. To evaluate the financial health of a company, financial managers examine these.
Working with Financial Statements: To get insights into a company’s performance, liquidity, profitability, and financial structure, this topic entails understanding and analysing financial statements.
Long-Term Financial Planning and Company Growth: Financial planning entails formulating plans for the company’s development and growth. Decisions about the capital budget, financial forecasts, and funding sources are all part of it.
Introduction to Valuation: Determining the value of a business or its assets is called valuation. This topic explains asset valuation techniques and stresses the significance of correct asset appraisal in making investment decisions.
Time value of money: This idea describes how the possibility of earning interest or returns through time makes money worth more than the same sum in the future.
Discounted Cash Flow Valuation: This technique calculates the present value of projected future cash flows from a project or investment. It is a typical method for determining investment value.
Other Investment Criteria and Net Present Value: An investment’s Net Present Value (NPV) is the difference between the present value of cash inflows and outflows. It is a crucial factor to consider while assessing investment options. The internal rate of return (IRR) and payback term could be additional criteria.
Making Capital Investment Decisions: This topic explores the process of assessing and choosing investments or initiatives that support the expansion and profitability of the business.
Understanding interest rates and how they affect bond prices is crucial since bonds are a popular source of company financing.
Stock valuation entails figuring out how much a company’s stock is worth. Different approaches include relative value and the discounted cash flow technique.
Using a variety of financial measures and criteria, potential projects are examined to ascertain their viability and potential returns. This process is known as project analysis and evaluation.
Lessons from Capital Market History: This topic examines past financial market movements and the knowledge they offer for wise investing choices.
Understanding the relationship between risk and return is essential for making investing decisions. Return, risk, and the security market line. When determining expected returns based on risk, the Security Market Line is helpful.
Cost of Capital: The weighted average cost of the money used to finance a company’s endeavours is known as the cost of capital. It is a crucial consideration when assessing investment options.
These subjects offer a thorough understanding of corporate finance concepts, which is crucial for financial managers and other decision-makers within an organisation.
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Topics : Introduction to Corporate Finance, Financial Statements, Taxes, and Cash Flows, Working with Financial Statements, Long-Term Financial Planning and Growth,Introduction to Valuation, the Time Value of the Money,Discounted Cash Flow Valuation,Net Present Value and Other Investment Criteria,Making Capital Investment Decisions, Interest Rates and Bond Valuation,Stock Valuation,Project Analysis and Evaluation,Some Lessons from Capital Market History,Return, Risk, and the Security Market Line,Cost of Capital