Introduction to Finance   By:
How many of you want to start a business of your own?Do you think basic knowledge of finance can help you in sound decision making?
Firms to run its operations requires….CAPITAL
What is the source of this capital?EYou put your own funds
You get it from outsideDCapital Structure
Now every source of capital has some cost associated with it?Equity           Opportunity Cost
Debt              Rate of InterestCost of Funds
What is the objective of the firm?Maximization of the Economic Profits!!!!
Where does a financial manager fit into the picture?Ensuring profitability by:Allocation of funds into profitable projects
Employing various sources of raising funds     	to reduce the overall cost of fundsNPVIRRPIReservesEquityBank LoansPreferential EquityFCCBECB
How does a Bank work
Banking
Divisions in all 3 Banking
Important Points
Other Financial Services
Investment Banking
Certifications

Introduction to Finance

  • 1.
  • 2.
    How many ofyou want to start a business of your own?Do you think basic knowledge of finance can help you in sound decision making?
  • 3.
    Firms to runits operations requires….CAPITAL
  • 4.
    What is thesource of this capital?EYou put your own funds
  • 5.
    You get itfrom outsideDCapital Structure
  • 6.
    Now every sourceof capital has some cost associated with it?Equity Opportunity Cost
  • 7.
    Debt Rate of InterestCost of Funds
  • 8.
    What is theobjective of the firm?Maximization of the Economic Profits!!!!
  • 9.
    Where does afinancial manager fit into the picture?Ensuring profitability by:Allocation of funds into profitable projects
  • 10.
    Employing various sourcesof raising funds to reduce the overall cost of fundsNPVIRRPIReservesEquityBank LoansPreferential EquityFCCBECB
  • 11.
    How does aBank work
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    Flavor of CorporateFinanceNet Present Value - NPVThe difference between the present value of cash inflows and the present value of cash outflowsInternal Rate Of ReturnThe IRR of a project is the discount rate that will give it a net present value (NPV) of zero.Flavor of Corporate FinanceUsing the project cash flows presented in the table below, compute the NPV, IRR, PI, Payback Period of each project cash flows &State according to you which project should be accepted. Assume cost of capital is 10%.
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    THANK YOU Team $treet :- ApurvaAgarwalBikashKediaRitom DasRohitBafnaSaurabhBansalSimantGoyalSonam Gupta

Editor's Notes

  • #4 Wealth in the form of money or property owned by a person or business and human resources of economic value