A-to-Z Index

Learning Outcomes

  1. Describe the role of the financial manager, including the overriding objective of financial decision-making, the issues interfering with that objective and the markets used to achieve the objectives; relate how the other functional areas affect the role of the financial manager.

  2. Given the basic account labels and values, construct an income statement and balance sheet and, given assumptions, forecast the income statement and balance sheet.

  3. Identify the attributes of incremental cash flows stemming from a capital budgeting decision, select the cash flows that conform to the attributes; show the formulas for internal rate of return (IRR) and net present value (NPV); and given the rate for the time value of money, apply the formulas to find the NPV and IRR for various sets of cash flows, such as incremental cash flows, cash flows from stocks cash flows from bonds.

  4. Describe the sources of funds for a company, compute the costs of each of these sources and determine the average cost for a specific company.  Identify how different mixes of debt and equity in the capital structure may influence the overall cost of funds.

  5. Integrate financial management theory and models with other functional disciplines of business in a dynamic and comprehensive framework in the process of building the business plan; understand the role of finance in the business environment.