5+-+SRM+UNIT+Money

Unit 4 Risk Management: Tools & Overview, Capital, Cash Outflow, Outside Financing
//This unit will be broken in to 4 sub units each with it's own assessment//

1. Tools & Overview

 * **Describe**the fundamental financial concepts involved in the management of corporate finances, including
 * the nature of depreciation
 * cash flows
 * **Analyze** the need of efficient capital markets in corporate finance

2. Capital

 * **explore**capital budgeting process
 * **perform calculations**necessary for capital budget decisions making including:
 * **calculating**the initial investment associated with the proposed capital expenditure
 * **determining**the operating cash inflows
 * **determining** terminal cash flow
 * **conduct**cash-flow analysis to select an acceptable capital expenditure including:
 * **interpreting**the nature of relevant cash flow-analysis
 * **explaining**the nature of the payback period
 * **calcualting**the payback period
 * **calculating**the net present value
 * **explaining**the relationship between the internal rate of return and the net present value
 * **calculating**the net present value
 * **calculating** the internal rate of return
 * **explaing**the role of financial planning in corporate finance, including
 * the financial planning process
 * short term operating strategic planning
 * long term operating trategic planning
 * **conduct**cash planning including:
 * **explaining**the use of cash budgets
 * **coping**with uncertainty in cash budgets
 * **preparing**a cash budget
 * **evaluating** a cash budget

3. Cash Outflow

 * **conduct**profit planning, including
 * **formulating**the use or pro-forma statments in profit planning
 * **developing**a pro-forma income statement
 * **preparing** a pro-forma balance sheet
 * **define** and **describe**the nature of short-term financial management
 * **explaing**the role of valuation in making appropriate financial decisions for a company including:
 * **discussing**the role of project valuation in capital allocation decisions
 * **comparing**methods of valuing flexibility
 * **discussing** the valuation impliactions in buisness finance

4. Outside Financing

 * **use**capital market securities to secure financing for a company, including but not limited to:
 * **analyzing**methods to determine the best financial option necessary for a company
 * **analyzing**the nautre of corporate bonds
 * **analyzing**and determining the cost of long-term debt
 * **describing**the issuance of stock from a corporation
 * **comparing**and contrasting preferred stock and common stock
 * **calculating** the cost of preferred stock and common stocks
 * **explaining**the role of dividends in corporate finance, including
 * forms of dividends and
 * reinvestment plans
 * **describe**the effect of a firm's dividend decisions on its external financing requirements
 * **illustrate**the residual theory of dividends
 * **describe**the impact of dividends on the value of the firm
 * **explain**the nature of a dividend policy
 * **explain**the factors to consider when deciding on the form of a dividend distribution
 * **analyze**ownership change transactions, including
 * **comparing**mergers and acquisitions
 * **explaining**the nature of hostile takeovers
 * **discussing**issues that arise from mergers and acquisitions
 * **explaining**methods for evaluating potential merger/acquisition targets
 * **analyzing** the nature of restructuring