❖ Compounding ❖ Frequency of Compounding ❖ Present Value and Discounting ❖ Alternative Discounted Cash Flow Decision Rules ❖ Multiple Cash Flows ❖ Annuities ❖ Perpetual Annuities ❖ Loan Amortization ❖ Exchange Rates and Time Value of Money ❖ Inflation and Discounted Cash Flow Analysis ❖ Taxes and Investment Decisions
❖ Review of Financial Statements ❖ Market Values v. Book Values ❖ Accounting v. Economic Measures of Income ❖ Return on Shareholders v. Return on Equity ❖ Analysis Using Financial Ratios ❖ The Relation Among ❖ Limitations of Ratio Analysis ❖ Purpose and Process of Financial Planning ❖ Managing Working Capital
What is Risk? Risk and Economic Decisions The Risk Management Process The Three Dimensions of Risk Transfer Risk Transfer and Economic Efficiency Institutions for Risk Management Portfolio Theory: Quantitative Analysis for Optimal Risk Management Probability Distributions of Returns Standard Deviation as a Measure of Risk