Course Description
Valuation of SecuritiesTime value of money. Valuation of Stocks and bonds.
Investment Appraisal Techniques and the limitations
Payback period. Average Accounting Return. Internal rate of return. Net
present value. Profitability Index. Incremental cash flows and Capital
Budgeting. Investments of unequal lives.
Risk Analysis, Real Options and Capital Budgeting
Decision trees, Real Options. Sensitivity Analysis. Scenario
Analysis. .Breakeven Analysis
Portfolio Theory
Risk statistics. Opportunity Set and Efficient set. Capital Market Line. Capital
Asset Pricing Model. The Security Market Line.
Cost of Capital
Beta. Cost of Equity. Cost of Debt. Weighted Average Cost of Capital.
Net Working Capital Management
Short-term Finance and Planning. Cash Management. Credit Management
PolyU
AF3313 Business Finance