Easy Education Bangladesh

Principles of Finance

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Course Content

Chapter-1 Introduction
Conceptual framework, Financial Decision making, Role of Finance in a firm. Goal of financial management of a firm, Finance as a discipline.

Chapter-2 Short Tearm Financing
Characteristics and sources, spontaneous sources, unsecured and secured short term loan, Assignment and factoring of accounts receivables and inventory financing.

Chapter-3 Intermediate Term Financing
Characteristics and sources, different methods, repayment method and effective interest calculation.

Chapter-4 Time Value of Money
Basic concepts, computing present value and future value : Single amounts-Annuities-Mixed streams

Chapter-5.1 Stock valuation
Characteristics and uses, Common stock capital, Preferred Stock Capital and Bond, Valuation of Stock and Bond.

Chapter-5.2 Bond Valuation
Characteristics and uses, Common stock capital, Preferred Stock Capital and Bond, Valuation of Stock and Bond.

Chapter-6 Risk & Return
Risk and Return fundamentals, Measuring risk; Probability distribution, Expected value, Standard deviation and co-efficient of variation. Risk premium, Risk and required rate of return, CAPM. Leverage and Risk-Financial Risk, Business Risk.

Chapter-7 Capital Budegt Cash Flow
The Capital Budgeting Decision Process-The relevant cash flows, finding initial investment, finding the operating cash inflows, finding the terminal cash flow, summarizing the relevant cash flows.

Chapter-8 Capital Budget Teachniques
Overview of capital budgeting techniques-Pay Back Period, Net Present Value (NPV), Internal Rate of Return (IRR), Comparing NPV and IRR.

Chapter-9 Capital Structure Decision & Theory
The firm’s capital structure-The EBIT-EPS approach to capital structure, choosing the Optimal Capital Structure.

Chapter-10 Long Term Financial Decision

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