Financial Strategy and Investment Guide
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Muhammad Zahid FaridFinancial Strategy and Investment Guide
Uploaded by
Muhammad Zahid FaridTopic
Part A - Formulation of Financial Strategy
1. Objectives of organizations
2. Constraints on Financial Strategy
3. Forecasting and Analysis
4. Financial Strategies
Part B - Financing Decisions
5. Equity Finance
6. Debt Finance
7. Leasing
8. Cost of Capital
9. Capital Structure
10. Operating and Financial Leverage
11. Treasury Management
Part C - Investment Decisions and Project Control
12. Investment Appraisal Techniques
13. International Investment
14. Specific Investment Appraisal Scenarios
15. Control of Investment Projects
16. Business Valuations
17. Amalgamations and Restructuring
Subtopics/Details
Objectives of Companies, Stakeholders and Objectives, Objectives of public owned, Objectives of non-commercial bodies
Constraint Factors, Economic Constraints, International Constraints, Regulatory bodies
Performance Analysis (Ratios, DuPont, Z-Score), Cash Forecasts (Cash Budget), Financial Statements Forecast (Budgeted IS & B
Working Capital Management, Dividend Policy (Traditional, MM, Irrelevancy, Factors, Signaling, Stability, Stock Dividend, Buyb
Capital Markets, Rights Issues (TERP), Valuation (DDM, Multiplier Models), Scrip/Bonus Issues, Share Prices, CAPM, Risk & Retu
Medium & Long Term Debt, Convertible Securities, Warrants, International Debt, Bonds (Valuation, Yield Curve, KIBOR/LIBOR,
Operating vs Financial Lease, Amortization, Lease or Buy Decision
Concept, Cost of Equity (DDM, CAPM), Cost of Debt, Cost of Preference Shares, WACC, Project Specific Cost (Asset/Equity Beta
Decision, Effect on Ratios, Theories (Traditional, MM without/with tax)
DOL, DFL, DTL, Break-Even Points, Optimal Financing Option
Treasury Functions, FX Rates, Risk & Reward, Hedging (Forwards, Money Market, Options, Futures, Swaps)
ARR, Payback, NPV, IRR, MIRR, PI, EAB, EAC, Risk/Uncertainty, Sensitivity, Expected Value
Basis & Risks, Appraisal (NPV), PPP, Fisher Effect, Interest Rate Parity, Currency Appreciation/Depreciation
Capital Rationing (Soft/Hard, Divisible/Indivisible), EAB, EAC, Real Options (BSM), Adjusted Present Value (APV)
Feasibility Study, Project Control, Investment Performance, Post-Completion Audits
Reasons, Asset/Earning/Dividend/Cash Flow Valuation, EVA, MVA, Intangibles, Valuation Issues
Mergers & Acquisitions, Synergies, Takeovers, Valuation, Regulation, Post-Acquisition Integration, EPS Impact, LBO/MBO, Defe
Subtopic
Part A - Formulation of Financial Strategy
1. Objectives of organizations
a) Objectives of Companies
b) Stakeholders and Objectives
c) Objectives of public owned
d) Objectives of non-commercial bodies
2. Constraints on Financial Strategy
a) Constraint Factors
b) Economic Constraints
c) International Constraints
d) Regulatory bodies
3. Forecasting and Analysis
a) Performance Analysis (Ratios
b) DuPont
c) Z-Score)
d) Cash Forecasts (Cash Budget)
e) Financial Statements Forecast (Budgeted IS & BS)
f) Sensitivity Analysis
4. Financial Strategies
a) Working Capital Management
b) Dividend Policy (Traditional
c) MM
d) Irrelevancy
e) Factors
f) Signaling
g) Stability
h) Stock Dividend
i) Buyback)
Part B - Financing Decisions
5. Equity Finance
a) Capital Markets
b) Rights Issues (TERP)
c) Valuation (DDM
d) Multiplier Models)
e) Scrip/Bonus Issues
f) Share Prices
g) CAPM
h) Risk & Return
i) EMH
6. Debt Finance
a) Medium & Long Term Debt
b) Convertible Securities
c) Warrants
d) International Debt
e) Bonds (Valuation
f) Yield Curve
g) KIBOR/LIBOR
h) Green Bonds)
7. Leasing
a) Operating vs Financial Lease
b) Amortization
c) Lease or Buy Decision
8. Cost of Capital
a) Concept
b) Cost of Equity (DDM
c) CAPM)
d) Cost of Debt
e) Cost of Preference Shares
f) WACC
g) Project Specific Cost (Asset/Equity Beta
h) Risk Adjusted WACC)
9. Capital Structure
a) Decision
b) Effect on Ratios
c) Theories (Traditional
d) MM without/with tax)
10. Operating and Financial Leverage
a) DOL
b) DFL
c) DTL
d) Break-Even Points
e) Optimal Financing Option
11. Treasury Management
a) Treasury Functions
b) FX Rates
c) Risk & Reward
d) Hedging (Forwards
e) Money Market
f) Options
g) Futures
h) Swaps)
Part C - Investment Decisions and Project Control
12. Investment Appraisal Techniques
a) ARR
b) Payback
c) NPV
d) IRR
e) MIRR
f) PI
g) EAB
h) EAC
i) Risk/Uncertainty
j) Sensitivity
k) Expected Value
13. International Investment
a) Basis & Risks
b) Appraisal (NPV)
c) PPP
d) Fisher Effect
e) Interest Rate Parity
f) Currency Appreciation/Depreciation
14. Specific Investment Appraisal Scenarios
a) Capital Rationing (Soft/Hard
b) Divisible/Indivisible)
c) EAB
d) EAC
e) Real Options (BSM)
f) Adjusted Present Value (APV)
15. Control of Investment Projects
a) Feasibility Study
b) Project Control
c) Investment Performance
d) Post-Completion Audits
16. Business Valuations
a) Reasons
b) Asset/Earning/Dividend/Cash Flow Valuation
c) EVA
d) MVA
e) Intangibles
f) Valuation Issues
17. Amalgamations and Restructuring
a) Mergers & Acquisitions
b) Synergies
c) Takeovers
d) Valuation
e) Regulation
f) Post-Acquisition Integration
g) EPS Impact
h) LBO/MBO
i) Defense Mechanisms