Course Objectives
- To apply capital budgeting techniques (such as payback period, NPV, IRR) to evaluate and choose projects.
- To describe the procedures used to determine the weighted average cost of capital (WACC), the break points, and the weighted marginal cost of capital (WMCC) and its use with the investment opportunities schedules (IOS) to make financing/investment decisions.
- To discuss leverage (operating, financial, and total leverage), capital structure, breakeven analysis, the operating breakeven point, and the effect of changing costs on it.
- To explain the key factors involved in establishing dividend policies.
- To use various techniques of short-term financial managements such as inventory management, credit selection process, etc., to manage the working capital and its related tradeoff between profitability and risk.