Institute of Business Administration, Karachi

Executive MBA Banking and Financial Services Managerial Finance Course: December 2012 to March 2013
Resource person: Mr. M. Saqib Jalil (Cell No: 0333-4777030)
(Email: sj.iba.acf@gmail.com)

Topic Session 1 Introduction and overview of Financial Management and Financial Environment: Corporate Life style, Primary Objective of Corporations, Financial Markets and Institutions, The Cost of Money and Interest Rate levels. Time Value of Money: Time Line, Future Value, Present Value, Annuities, Perpetuities, Uneven Cash Flows, Growing Annuities, Semiannual and Other Compounding Periods, Amortized Loan. Financial Statements, Cash Flows and Taxes: The Balance Sheet, Income Statement, Statement of Retained Earnings, Net Cash Flow, Statement of Cash Flows, MVA and EVA. Risk and Return: Investment Returns, Stand-Alone Risk, Portfolio Risk, Beta Coefficient, Relationship between Risk and Returns, Beta and CAPM, Volatility versus Risk. Bonds and Their Valuation: Key Characteristics of Bond, Bond Valuation, Bonds with Semiannual Coupons, Assessing the Risk of a Bond. Stocks and Their Valuation: Common Stock Valuation, Constant Growth Stocks, Expected Return on common Stock, Stock Market Equilibrium, Preferred Stock. Cost of Capital: Cost of Debt, Cost of Common Stock, CAPM approach, Bond-Yield-plus-Risk-Premium Approach, Weighted Average Cost of Capital, Flotation Costs. Capital Budgeting, Evaluating Cash Flows: Project Classification, Capital Budgeting decision Rules, Payback period, Discounted Payback, NPV, IRR, MIRR, PI, Optimal Capital Budget.

Cash Flow Estimation and Risk Analysis: Estimating Cash Flows, Relevant Cash Flows, Evaluating Capital Budgeting Projects, Adjustments for Inflation, Project Risk Analysis. Analysis of Financial Statements: Ratio Analysis, Liquidity Ratios, Asset Management Ratios, Debt Management Ratios, Profitability Ratios, Market Value Ratios, Trend Analysis. Working Capital Management: Working Capital Investment Policies, Cash Conversion Cycle, Cash Management, Cash Budget, Receivable Management, Inventory Management, Working Capital Financing Policies. Credit Management: Credit Rating, Factors involved in Credit Rating, Ability to Pay, Willingness to Pay, Recourse, Collaterals, A/c Receivable Financing, Inventory Financing.
Financial Management, Theory and Practice, Twelfth (or Latest) By: Eugene F. Brigham and Michael C. Ehrhardt

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