Session Topic Hours
1 Financial Environment of Business
a. Capital Markets (Overview of different markets – Equity (Primary and
Secondary), Debt, Derivatives, Foreign exchange, other asset classes)
b. Overview of financial Institutions
c. Regulatory framework
10
2 Introduction to Financial Management
a. Objectives and Functions
3
3 Analysis of the firm 4
4 Investment Decisions
a. Time Value of Money 6
a. Valuation of Stocks and Bonds 2
a. Capital Budgeting and Analysis 5
30
What is Finance?
3
Flows of cash in business system
Cash Flow
From Firm
Cash for securities issued by firm
Ta
x
e
s
Retained Earnings
Dividends and
Debt Payments
The Capital Allocation Process
Business
Business
Business
Savers
Savers
Savers
Investment
Bank
Financial
Intermediary
Business’s Securities
Business’s Securities
1. Direct Transfer
2. Through Investment Bank
3. Through Financial Intermediary
Cash
Business’s Securities
Dollars Dollars
Dollars Dollars
Business’s Securities
Intermediary’s
Securities
FORMS OF BUSINESS ORGANIZATION
THANK YOU
R.V.Naveenan

Session-1 Introduction to Finance.pptx

  • 1.
    Session Topic Hours 1Financial Environment of Business a. Capital Markets (Overview of different markets – Equity (Primary and Secondary), Debt, Derivatives, Foreign exchange, other asset classes) b. Overview of financial Institutions c. Regulatory framework 10 2 Introduction to Financial Management a. Objectives and Functions 3 3 Analysis of the firm 4 4 Investment Decisions a. Time Value of Money 6 a. Valuation of Stocks and Bonds 2 a. Capital Budgeting and Analysis 5 30
  • 2.
  • 3.
    3 Flows of cashin business system Cash Flow From Firm Cash for securities issued by firm Ta x e s Retained Earnings Dividends and Debt Payments
  • 4.
    The Capital AllocationProcess Business Business Business Savers Savers Savers Investment Bank Financial Intermediary Business’s Securities Business’s Securities 1. Direct Transfer 2. Through Investment Bank 3. Through Financial Intermediary Cash Business’s Securities Dollars Dollars Dollars Dollars Business’s Securities Intermediary’s Securities
  • 5.
    FORMS OF BUSINESSORGANIZATION
  • 6.

Editor's Notes

  • #3 It is important to remind students that net income is NOT cash flow.