Corporate Fin Mgt NDLM.PDF

(Nora) #1

Capital Budgeting Decisions



  • Investment in long term assets.

  • Capital budgeting evaluation

  • Pay back period

  • NPV and IRR.

  • Profitability Index

  • Post audit
    Faculty may refer to the Reading Material in Learning Unit 4 for information on
    the above topics for presentation/


Visual - Aid 28: Measurement of Risk


Measurement of Risk



  • Forecasting risk

  • Risk and returns

  • Risk adjusted discount rate

  • Sensitivity analysis

  • Standard deviation to measure risk

  • Decision Tree approach

  • Utility Theory


Faculty may refer to the Reading Material in Learning Unit 4 for information on the
above topics for presentation


Visual Aid – 29: Cost of Capital, including CAP-M


Cost of Capital, including CAP-M



  • Measurement techniques of cost of capital

  • Wealth maximization approach

  • Explicit and Implicit costs

  • Debt financing

  • Weighted average cost of capital

  • Capital Asset Pricing Model

  • Rationale of CAP-M


Faculty may refer to the Reading Material in Learning Unit 4 for information on the
above topics for presentation

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