Finance Lesson Plans: Opening Pages

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Understanding Finance is very simple when the content in the Lesson is organized in an orderly manner. Here is a set of Opening Pages of some important topics of Financial Management. These give an insight into what should be covered on the first day when learning/teaching Finance topics including Capital Structure, Dividend Theory, Cost of Capital, Capital Budgeting, Portfolio Management and Investment Decisions

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OPENING PAGES of LESSON PLANS : namrataaro@gmail.com namrata_arora@rediffmail.com info.stanleysolutions@gmail.com OPENING PAGES of LESSON PLANS Financial Management By Namrata Arora

FACT : namrataaro@gmail.com namrata_arora@rediffmail.com info.stanleysolutions@gmail.com FACT Risk and return figures calculated in Valuation are used to analyze both Investment Decisions as well as Financing and Dividend Decisions

Introductory Lesson Plans: Opening Pages : namrataaro@gmail.com namrata_arora@rediffmail.com info.stanleysolutions@gmail.com Introductory Lesson Plans: Opening Pages Risk & Return: Portfolio Theory Cost of Capital Capital Budgeting Financial and Operating Leverage Capital Structure Theories Dividend Theory

Introductory Lesson Plan onRisk & Return: Portfolio Theory : namrataaro@gmail.com namrata_arora@rediffmail.com info.stanleysolutions@gmail.com Introductory Lesson Plan onRisk & Return: Portfolio Theory TERMS TO BEGIN WITH Diversified Portfolio Systematic and Unsystematic risk Correlation Covariance (Correlation Coefficient) SENTENCES TO ELABORATE In Diversification, combine negatively correlated assets to reduce the overall variability of returns or risk. Diversification is widely used by investors to reduce investment risk.

Introductory Lesson Plan onCost of Capital : namrataaro@gmail.com namrata_arora@rediffmail.com info.stanleysolutions@gmail.com Introductory Lesson Plan onCost of Capital TERMS TO BEGIN WITH: Capital and its scope Return on Capital and its Comparison with Cost of Capital Discount Rate Net Present Value Risk –free return, Market Risk, Risk Premium Cost of Debt, Cost of Equity, Cost of Retained Earnings SENTENCES TO ELABORATE The cost of capital is taken as the discount rate at which projected cash flow will be discounted to give a Present or Net Present Value.

Introductory Lesson Plan on Capital Budgeting : namrataaro@gmail.com namrata_arora@rediffmail.com info.stanleysolutions@gmail.com Introductory Lesson Plan on Capital Budgeting TERMS TO BEGIN WITH Mutually Exclusive Investments Independent Investments Initial Investments Net Cash Flows, Depreciation and Taxes Expansion Modernization and Replacement SENTENCES TO ELABORATE Capital Budgeting is all about carefully planning and investing money after ascertaining flows in long-term investment alternatives

Introductory Lesson Plan on Financial and Operating Leverage : namrataaro@gmail.com namrata_arora@rediffmail.com info.stanleysolutions@gmail.com Introductory Lesson Plan on Financial and Operating Leverage TERMS TO BEGIN WITH Financial Leverage Trading on Equity Gearing Debt-Ratio, Debt-Equity Ratio, Interest Coverage, Shareholder’s Return, EPS, ROE, EBIT Operating Leverage Operating Risk, Financial Risk SENTENCES TO ELABORATE Leverage refers to the use of Debt to supplement investment

Introductory Lesson plan on Capital Structure Theories : namrataaro@gmail.com namrata_arora@rediffmail.com info.stanleysolutions@gmail.com Introductory Lesson plan on Capital Structure Theories TERMS TO BEGIN WITH Capital Structure Equity, Debt, Securities Leverage Net Income Approach Net Operating Income Approach Traditional Approach, Modgliam & Miller Approach SENTENCES TO ELABORATE The manner in which a corporation finances its assets with a combination of equity, debt, or hybrid securities

Introductory Lesson plan on Dividend Theory : namrataaro@gmail.com namrata_arora@rediffmail.com info.stanleysolutions@gmail.com Introductory Lesson plan on Dividend Theory TERMS TO BEGIN WITH Payout Ratio Tax and Return Stock Value Dividend Irrelevance SENTENCES TO ELABORATE The Dividend Policy is used by the company to decide how much it will pay out to shareholders in the form of dividends.

MORE LESSON PLANS : namrataaro@gmail.com namrata_arora@rediffmail.com info.stanleysolutions@gmail.com MORE LESSON PLANS COMPLETE LESSON PLANS with Glossary, Explanation, Theory and Practical questions

CONTACT : namrataaro@gmail.com namrata_arora@rediffmail.com info.stanleysolutions@gmail.com CONTACT For detailed Lesson plans on topics relating to Financial Management, Human Resource Management, Marketing Management and other Management Subjects Contact Namrata Arora Stanley Solutions info.stanleysolutions@gmail.com