Theory topics

1. Internal Rate of Return

2. Types of Preference shares including Participative and non-participative
3. Commercial Paper
4. Trade Credit
5. Letter of Credit
6. Types of Debentures
7. Components of cost of capital
8. Angel Investors
9. Venture Capitalists
10. Di erence between Angel Investors and Venture Capitalists
11. Capital Budgeting and its features
12. MM theory – explanation, assumptions, criticisms
13. Trading on Equity
14. Important decision-making areas of FM – Capital Structure, Capital Budgeting,
Working Capital management, Dividend Policy decisions
15. Profit maximization
16. Wealth maximization
17. Traditional approach of Capital Structure
18. Payout ratio
19. Net Present Value technique of Capital Budgeting decision
20. EBIT-EPS analysis
21. Payback period
22. Business risk vs Financial risk
23. Leverage- Financial Leverage and Operating Leverage
24. Role of financial manager
25. Short term sources of Working Capital
26. Importance of Capital Structure
27. Types of Capital Budgeting decisions and their di erences
28. Important detriments of Working capital
29. Capital Budgeting Techniques – Payback period, IRR, NPV (both Practical and
theory)
30. EPS & ROE
31. Hybrid Instrument – Definition and example
32. Equity capital and its importance and advantages
33. Discounted Cash Flow techniques of Capital Budgeting – NPV, IRR, discounted
payback period
34. Operating leverage, financial leverage and combined leverage
35. Financial management and its importance
36. Operating cycle
37. IPO and steps in processing an IPO
38. Leasing and its types – Operating and financial lease
39. Annuity and perpetuity
40. Sinking fund
41. Gross working capital and Net working capital
42. Green shoe option
43. Tender/Book Building method
44. Net Income Approach vs Net Operating Income Approach to the theory of
Capital Structure