Introduction to Finance

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  • Wealth in the form of money or property owned by a person or business and human resources of economic value
  • Introduction to Finance

    1. 1. Introduction to Finance <br /> By:<br />
    2. 2. How many of you want to start a business of your own?<br />Do you think basic knowledge of finance can help you in sound decision making?<br />
    3. 3. Firms to run its operations requires….<br />CAPITAL<br />
    4. 4. What is the source of this capital?<br />E<br /><ul><li>You put your own funds
    5. 5. You get it from outside</li></ul>D<br />Capital Structure<br />
    6. 6. Now every source of capital has some cost associated with it?<br /><ul><li>Equity Opportunity Cost
    7. 7. Debt Rate of Interest</li></ul>Cost of Funds<br />
    8. 8. What is the objective of the firm?<br />Maximization of the <br />Economic Profits!!!!<br />
    9. 9. Where does a financial manager fit into the picture?<br />Ensuring profitability by:<br /><ul><li>Allocation of funds into profitable projects
    10. 10. Employing various sources of raising funds to reduce the overall cost of funds</li></ul>NPV<br />IRR<br />PI<br />Reserves<br />Equity<br />Bank Loans<br />Preferential <br />Equity<br />FCCB<br />ECB<br />
    11. 11. How does a Bank work<br />
    12. 12. Banking<br />
    13. 13. Divisions in all 3 Banking<br />
    14. 14. Important Points<br />
    15. 15. Other Financial Services<br />
    16. 16. Investment Banking<br />
    17. 17. Certifications<br />
    18. 18. Flavor of Corporate Finance<br />Net Present Value - NPV<br /><ul><li>The difference between the present value of cash inflows and the present value of cash outflows</li></ul>Internal Rate Of Return<br /><ul><li>The IRR of a project is the discount rate that will give it a net present value (NPV) of zero.</li></li></ul><li>Flavor of Corporate Finance<br />Using the project cash flows presented in the table below, <br />compute the NPV, IRR, PI, Payback Period of each project cash flows &<br />State according to you which project should be accepted. <br />Assume cost of capital is 10%.<br />
    19. 19. THANK YOU<br /> Team $treet :- <br />ApurvaAgarwal<br />BikashKedia<br />Ritom Das<br />RohitBafna<br />SaurabhBansal<br />SimantGoyal<br />Sonam Gupta<br />

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