Corporate Finance

Introduction to Accounting & Finance

• What is Accounting

• What is Finance

• How does Finance differ from Accounting

• What are the differences between Financial Accounting and Management Accounting?

• Your impact on financial statements

• Planning, forecasting, and budgeting

Financial statements & their critical elements

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Non Cash Deductions & its Impact

• Depreciation vs. Amortization vs. Depletion

• Book Value vs. Market Value

• Understanding the shareholder's expectatio

What is Working Capital – liquidity or bankruptcy

• Working capital (WC) defined

• Components of WC

• Cash

• Accounts receivable

• Inventory

• Accounts payable

• What is the right amount of WC & why

• The critical ratios to compute

• Other WC tools like accounts receivable & payable agings

• Why credit policies & collection procedures matter

Capital Structure – what it is & why it is important

• Equity capital - what it is & why it impacts our decisions

• Debt capital – what is it really & how it impacts the required rate of return

• Weighted Cost of Capital (WACC) – why it is so important

• Calculating your WACC: when & how to use it

• Leverage: two-edged sword - defined

• Operating vs. financial vs. combined leverage – calculated

CAPEX -Analysis of Investment Decisions with What-if Risks

• Cash Flows and the Time Value of Money

• Discuss the capital project evaluation process

• Estimating cash flows over the useful life of the project

• Net present value (NPV) & Internal Rate of Return (IRR) as preferred methods

• Profitability Index (PI) & Modified Internal Rate of Return (MIRR) as reasonable alternatives

• Defining the approval criteria and review process