Introduction

Challenges of Financial/Economic Decision-making

  • Lessons for the Millennium
  • The Economic Manager
  • The Practice of Financial/Economic Analysis
  • The Value Creating Company

Context for Financial Management

  • A Dynamic Perspective of Business
  • The Nature of Financial Statements
  • he Context of Financial Analysis

Managing Operating Funds

  • Variability of Funds Flows
  • Funds Management and Shareholder Value

Assessment of Business Performance

  • Ratio Analysis and Performance
  • Management’s Point of View
  • Owners’ Point of View
  • Lenders’ Point of View
  • Ratios as a System
  • Integration of Financial Performance Analysis
  • Some Special Issues e.g. The Impact of Inflation

Projection of Financial Requirements

  • Pro Forma Financial Statements
  • Cash Budgets
  • Operating Budgets
  • Interrelationship of Financial Projections
  • Financial Modeling
  • Sensitivity Analysis

Dynamics and Growth of the Business System

  • Financial Growth Plans
Cash Flows and the Time Value of Money

  • The Time Value of Money

  • Methods of Analysis

  • Applying Time-Adjusted Measures

Analysis of Investment Decisions

  • Strategic Perspective

  • Decisional Framework

  • Refinements of Investment Analysis

  • Mutually Exclusive Alternatives

  • Comparing Different Scenarios

  • Dealing with Risk and Changing Circumstances

  • When to Use Investment Measures

  • Some Further Considerations e.g Leasing—A Financing Choice, Inflation and Investment Analysis and Accuracy

Cost of Capital and Business Decisions

  • Decisional Context

  • Cost of Shareholders’ Equity

  • Weighted Cost of Capital

  • Cost of Capital and Return Standards

Analysis of Financing Choices

  • Framework for Analysis

  • Techniques of Calculation

  • Range of Earnings Chart

  • The Optimal Capital Structure

Valuation and Business Performance

  • Definitions of various kinds of Business Values

  • Value to the Investor

  • Business Valuation

Managing for Shareholder Value

  • Shareholder Value Creation in Perspective
  • Evolution of Value-Based Methodologies
  • Creating Value in Restructuring and Combinations
  • Integration of Value Analysis