FM Calculation:

Unit 1

1. Range
2. Present value of single cash flow
3. Present value of uneven cashflow
4. Present value of annuity
5. Present value of perpetuity(infinity)
6. future value of single cash flow
7. future value of uneven cashflow
8. future value of annuity
9. future value of growth annuity
10. Present value of bonds
11. Bond- current yield
12. Bond -Yield to maturity
13. Bond -Yield to call
14. Discounted cash flow
15. Balance sheet – book value
16. Balance sheet - Liquidation methods
17. Dividend valuation method- Single period cash flow
18. Dividend valuation method - Multi-period cash flow
19. Dividend valuation method - Zero growth rate
20. Dividend valuation method - Gordon model
21. Price earnings ratio
22. price book ratio
23. Price to sales ratio

Unit 2

1. Payback period
2. Payback period - Equal cash flow
3. Payback period - Unequal cash flow
4. Accounting rate of return
5. Calculate payback period & ARR
6. Net present value
7. Internal rate of return
8. Profitability index
9. Capital rationing - Single period constraints
10. Capital rationing - Multi-period capital constraints

risk analysis

1. Probability & expected values

2. Standard deviation method
3. Optimistic pessimistic estimates
 4. Risk adjusted discount rate
5. Certainty equivalents method
6. Sensitivity analysis
7. Decision tree approach

Unit 3

Cost of debentures/Bond/ long term loan

1. Cost of irredeemable debentures before TAX with premium , with Discount

2. Cost of irredeemable debentures after TAX with premium , with discount

Cost of preference share

1. Cost of irredeemable preference share – with premium, with Discount

Cost of equity

1. Dividend yield method

2. Dividend yield plus growth
3. Earning yield method
4. Capital asset pricing model
5. Cost of retained earnings

Weighted average cost of capital

1. Weighted average cost of capital – book value

2. Weighted average cost of capital – market value method
3. EBIT –EPS Analysis

Leverage

1. Operating leverage
2. Financial leverage
3. Combined leverage
4. Calculate DOL,DFL,CL
Unit 4

Capital structure theory

1. Net income approach

2. Net operating income approach
3. Modigliani miller approach
4. Traditional approach

Dividend Policy

1. Walter’s Model
2. Gordon’s Model
3. Modigliani-Miller (M-M) Hypothesis

Unit 5

1. Operating cycle
2. Working capital Management
3. Receivables Management
4. Inventory Management – EOQ, ABC Analysis