425 Capital Budgeting and Long Term Financing
Finance
Approved course information last updated: 2 years, 3 months ago
Pre-requisites: FIN 327
Requisite To: None
Lab Session:
Course Description
This course focuses on capital budgeting and long-term financing decisions. All major topics concerned with strategic investment decisions are covered in the course, including investment value measurements, cash flow analyses, risk assessments, and capital structure/financing analyses. The problems will provide the opportunity to apply concepts and methods.
Course Learning Objectives (CLOs)
- Explain the different types of valuation models and the assumptions behind them.
- Use time value of money concepts to value the price of common equity and bonds.
- Use capital budgeting methods (i.e. npv, irr, mirr, pbp, etc.) to solve financial problems.
- Estimate the future free cash flows for the project/company and use capital budgeting methods to arrive with the appropriate financial decision.
- Use the relevant data to calculate the weighted average cost of capital for the company/project.
- Estimate the expected net present value and standard deviation for the project and make the appropriate financial decision.
Syllabus History