Prerequisite chapters:

1. The role of financial management

2. Time value of money
3. Valuation of long term securities
4. Risk and return
5. Capital budgeting and cash flows estimation
6. Capital budgeting techniques
7. Required return and cost of capital
8. Operating and financial leverage

Prerequisite concepts:

1. Agency Problem
2. How to resolve the Agency Problem
3. Intrinsic Value
4. Bond
5. Coupon Rate/Payment
6. Console
7. Zero Coupon Bond
8. Preferred Stock
9. Common Stock
10. Yield to Maturity
11. Bond Discount and its relation to required rate of return
12. Bond Premium and its relation to required rate of return
13. Return
14. Risk
15. Risk Aversion
16. Portfolio
17. Diversification
18. Systematic Risk
19. Unsystematic Risk
20. CAPM
21. Beta
22. SML
23. Underpriced stock and its relation to expected and required return
24. Overpriced Stock and its relation to expected and required return
25. Capital Budgeting
26. Payback Period, its acceptance criterion and drawbacks
27. IRR, its acceptance criterion and drawbacks
28. NPV, , its acceptance criterion and drawbacks
29. PI, its acceptance criterion and drawbacks
30. Multiple IRR
31. Ranking problems for mutually exclusive projects (Whole Concepts)
32. WACC
33. Cost of equity capital
34. Cost of debt
35. Cost of preferred stock
36. Flotation cost
37. Leverage
38. Operating Leverage
39. Financial Leverage
40. DOL
41. Business risk
42. DFL
43. Financial Risk
44. Total firm risk
45. Total Leverage
46. DTL
47. Debt capacity
48. Debt service burden
49. Capital structure
50. Basic concept and format of CF estimation (Initial+Interim+terminal)