1. Introduction to Corporate Finance : Corporation- The Role of Financial Manager – Agency Problem.
2. NPV as Investment Decision Criteria: Comparing NPV with other methods of investment Decisions: The problems
of Multiple rates of Return, Mutually Exclusive Projects, Capital Rationing.
4. The Investment Decision : The Cash Flow, Equivalent annual Costs, Project Interactions
5. Capital Budgeting and Risk: Company and Project Costs of Capital, Measuring the Cost of Equity, Capital Structure
and the Company Cost of Capital, Risk Adjusted Discount Rate , Sensitivity Analysis, Monte Carlo Simulation, Real
Options and Decision Trees.
6. Alignment of Managers and Owners Goal: : Practical aspects of Capital Investment Process, Information and
Capital Investment, Incentives and their role in agency Problem, Measuring and Rewarding Performance: EVA, Pros
and Cons of EVA
7. Market efficiency and Corporate Financing Basics of EMH, The Anomalies, The lessons for the Corporate
Manager
8. The Financing Decision: The Financing Process, The financing Mix: Tradeoffs and Theory, The Optimal Financing
Mix, The Financing Mix and Choices
9. The Dividend Decision: Dividend Policy, analyzing Cash Returned to Stockholders, Buybacks, Spinoffs, and
Divestures
10. Valuation: Principles and Practice of Valuation, Value Enhancement: Tools and Techniques, Acquisitions and
Takeovers