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Measuring shareholders value creation : Economic Value Added (EVA
Multiple choice questions Assignments
2 THE MATHEMATICS OF FINANCE
Concept and relevance Compounding technique Discounting technique Applications of the concept of TVM
STUDENTS ACTIVITIES
Points to remember Graded illustrations Objective type questions Multiple choice questions Assignments Problems
PART II : VALUATION AND RISK MANAGEMENT
3 VALUATION OF SECURITIES
Concept of Valuation Required Rate of Return Basic Valuation Model Bond Valuation - Bond Value in case of Semi-Annual Interest Yield to Maturity (YTM) Interaction between Bond Value and the Interest Rate Valuation of Convertible Debentures Valuation of Deep Discount Bonds (DDB) Valuation of Preference Shares Valuation of Equity Shares - Valuation of Equity Shares based on Accounting Information - Valuation of Equity Shares based on Dividends - Valuation of the Share Currently not paying Dividends - Valuation of Equity Shares based on Earnings Risk-return Dimension, Share Valuation and Financial Decision making Valuation of Other Financial Assets
STUDENTS ACTIVITIES
Points to remember Graded illustrations Objective type questions Multiple choice questions Assignments Problems
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4RISK-RETURN RELATIONSHIP, PORTFOLIO MANAGEMENT AND CAPITAL ASSET PRICING MODEL
Concept of Risk and Return Portfolio Management - Theory of Portfolio Selection (or Selection of an Efficient Portfolio) β Factor and its Calculation Capital asset pricing model Portfolio Evaluation
STUDENTS ACTIVITIES
Points to remember Graded illustrations Objective type questions Multiple choice questions Assignments Problems
5 FINANCIAL DERIVATIVES : FUTURES, OPTIONS, SWAPS AND CREDIT DERIVATIVES
Derivatives : An Introduction Options strategies Special types of options
STUDENTS ACTIVITIES
Points to remember Graded illustrations Objective type questions Multiple choice questions Assignments Problems
PART III : LONG-TERM INVESTMENT DECISIONS : CAPITAL BUDGETING
6 CAPITAL BUDGETING - ESTIMATION OF CASH FLOWS
Features and significance Problems and Difficulties in Capital Budgeting Types of capital budgeting decisions Capital Budgeting Decisions and Funds Availability Capital budgeting decisions : Assumptions and procedure Estimation of costs and benefits of a proposal Incremental approach to cash flows
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