Capital Budgeting and Cash Flow Estimation

Capital Budgeting and Cash Flow Estimation

This lesson introduces capital budgeting concepts, the process of evaluating long-term investments, risk illustration, types and classification of project proposals, and stepwise procedures in project screening. It focuses on cash flow estimation methods—initial, net, and terminal—various principles for accurate projection, and offers real-world case examples showing the importance of analyzing sector performance, technological changes, and financial impacts when selecting projects

Inventory and Receivables Management

Inventory and Receivables Management

This lesson covers techniques and theory for inventory and receivables management, such as EOQ, ABC Analysis, JIT, MRP, credit decision-making, policy design, credit monitoring, and financing options for receivables. It presents practical formulas, illustrations, and decision frameworks for managers.

Working Capital Management

Working Capital Management

This lesson explores types, determinants, and techniques of working capital management, advantages of adequate vs. excessive or inadequate working capital, operating cycle, short-term financing sources, and committee recommendations. Practical insights aim to help businesses manage liquidity, efficiency, and profitability.

Capital Structure Decisions and Risks

Capital Structure Decisions and Risks

Focused on practical capital structure decision-making, this lesson covers features of a sound capital structure, EBIT-EPS analysis, cash flow and valuation approaches, business risk, operating vs. financial leverage, and differences in capital structures across industries. Includes case study and business risk assessment.

Finance Capital Structure Theories

Finance Capital Structure Theories

This lesson discusses capital structure, debt vs. equity, financial leverage, optimal capital structure, Modigliani-Miller Propositions, arbitrage, Net Income and Net Operating Income approaches, and leverage measures such as DSCR, debt-equity ratio, and more. Comprehensive glossary and theoretical frameworks included.