1. Welcome to Finance

  • What Is Finance?
2. Introduction

  • Financial Statements
  • Golden State Canning
  • Overview
3. Ratio Analysis

  • Definition
  • Growth
  • Profitability
  • Efficiency
  • Liquidity
  • Leverage
  • Risk
  • Common-Size Financial Statements
  • Interpretation of Statements
  • List of Common Ratios
  • Qualifications
  • Review
4. Cash Cycle and Growth

  • Cash Cycle
  • Sources and Uses
  • Growth
  • Review
5. Financial Forecasting

  • Basic Ingredients
  • The Process
  • Bias, Error, and Uncertainty
  • Pro Formas
  • Review
6. Rearranging Financial Statements

  • Real vs. Financial
  • Cash vs. Non-Cash
  • Simplification
  • Review
7. Capital Structure

  • Formulation of the Problem
  • Debt
  • Equity
  • Financial Leverage and Risk 
  • Irrelevance
  • Relaxing M&M Condition — Taxes
  • Cost of Financial Distress 
  • Tax Shields and CFD — The Static Tradeoff Model
  • Alternative Models 
  • Payout Policy
  • Review
8. Time Value of Money and Project Valuation

  • Introduction
  • Compounding and Discounting
  • Valuing Golden State’sJarring Line Project
  • Investment Decision Criteria
  • Perpetuities
  • Review

9. Risk & Return

  • Roadmap
  • Expected Cash Flow
  • Risk-Adjusted Discount Rates 
  • Value Maximization & Opportunity Cost
  • Roadmap
  • CAPM
  • Roadmap  
  • Project Discount Rates
  • Roadmap
  • The Weighted Average Cost of Capital
  • Review
10. Valuing a Business

  • Basic Approaches
  • DCF Ingredients
  • Putting It Together
  • Sensitivity Analysis
  • Conclusion
  • Review