Lesson 13: Presentation and Report Writing and skills

v Acquired report writing skills

v Be able to differentiate between different types of reports

v Be able to list the characteristics of a good report and the steps to be followed to write a 

        good report

v Appreciate the different report structures and agree on a standard structure

v Consolidated their data interpretation skills

v Presentation consideration and skills in writing and presenting to audience

Lesson 13, Part 1

Lesson 13, Part 2

Lesson 13, Part 3

Lesson 12: Capital Structure Decisions

v What factors affect the target capital structure?

v What is business risk?  What is financial risk?

v What is the optimal capital structure?

v How do asymmetric information and signals affect capital structure decisions?

v Do international differences in financial leverage exist?

Lesson 12

Capital Structure and WACC Excel 

Lesson 11: Business Loan Considerations and Calculation

v Lesson focuses on financial contracts  between lenders    and borrowers

v Non-traded financial contracts   are tailor-made to  fit the  characteristics of the borrower

v In business financing, the  differences in contracting can  be  great, both in terms of how financial  instruments  are originated and in the  characteristics of the terms of contract

v Loan amortizing

Lesson 11, Part 1

Lesson 11, Part 2

Lesson 11, Part 3

Loan Excel File 

Lesson 10: Investment and Project Evaluation Techniques

v Define net present value, payback period, internal rate of return, and profitability index.

v Describe decision rules for each of the tools in objective 1, for both stand-alone 

        and  mutually exclusive projects.

v Given cash flows, compute the NPV, payback period, internal rate of return for a given 

        project.

v Compare each of the capital budgeting tools above, and tell why NPV always gives the 

        correct decision.

Lesson 10, Part 1

Lesson 10, Part 2

Lesson 10, Part 3


NPV and IRR Excel Application 

Lesson 9: Time Value of Money Theory and Applications

v Understand what is meant by "the time value of money."

v Understand the relationship between present and future value.

v Describe how the interest rate can be used to adjust the value of cash flows – 

        both forward and backward – to a single point in time.

v Calculate both the future and present value of: (a) an amount invested today; (b) a 

        stream of equal cash flows (an annuity); and (c) a stream of mixed cash flows.

v Distinguish between an “ordinary annuity” and an “annuity due.”

v Use interest factor tables and understand how they provide a shortcut to 

        calculating present and future values.

v Use interest factor tables to find an unknown interest rate or growth rate when 

        the number of time periods and future and present values are known.

v Build an “amortization schedule” for an installment-style loan.

Lesson 9

Lesson 8: Preparing Budget

v Consideration of all external factors

v Preparation of other budgets

v Production budget, purchases budget, direct labour budget, overheads budget and selling and administrative budget

v Negotiation of budget

v Coordination of budget

v Cash budget, capital expenditure budget, budget balance sheet, budget income statement, budget cash flow statement, budget statement of retained earnings

Lesson 8, Part 1

Lesson 8, Part 2

Lesson 8, Part 3

Lesson 7: Operation Breakeven and Margin of Safety

v Define Breakeven Analysis

v Theory behind it

v What it can be used for

v Breakeven formula

v Example

v Problem

v Conclusion

Lesson 7, Part 1

Lesson 7, Part 2

Lesson 7, Part 3

Lesson 6: Management Decisions and Financial Statements

v Focus: Managerial decisions (document how financial statements reflect managerial decisions)

v Three types of activities reflected in financial statements

v Generally accepted accounting principles (GAAP)

v    Four primary financial statements

Lesson 6, Part 1
Lesson 6, Part 2
Lesson 6, Part 3
Lesson 6, Part 4

Lesson 5: Financial Planning

v Understand the financial planning process and how 

       decisions are interrelated

v Be able to develop a financial plan using the percentage   

       of sales approach

v Be able to compute external financing needed and 

       identify the determinants of a firm’s growth

v Understand the four major decision areas involved in  

       long-term financial planning

v Understand how capital structure policy and dividend 

       policy affect a firm’s ability to grow

Lesson 5, Part 1

Lesson 5, Part 2

Lesson 5, Part 3

Trainee Notes 5

Lesson 4: Cost of Capital

v Sources of capital

v Cost of each type of funding

v Calculation of the weighted average cost of capital (WACC)

v Construction and use of the marginal cost of capital schedule   (MCC)

Lesson 4, Part 1

Lesson 4, Part 2

Trainee Notes 

Lesson 3: Project Financing

v What is a Project?

v What is Project Finance?

v Project Structure

v Financing choices

Lesson 3

Trainee Notes

Lesson 2: Sources of Finance

v Identification and evaluation of different sources of finance

v Importance of ownership to the financing of a company

v When and for what reasons a bank loan might be available

v Other ways of borrowing money

v    The variety of grants that are available

Lesson 2, Part 1

Lesson 2, Part 2 

Trainee Notes 

Lesson 1: Introduction to Finance

v Defining Finance

v Why Study Finance

v Household Finance

v Financial Decisions-Firms

v Forms of Business Organization

v Separation of Ownership and Management

Lesson 1, Part 1

Lesson 1, Part 2

Trainee Notes