（一）Content: ? Organizational Objectives ? Corporate Governance ? Concepts of Market Efficiency ? Basic Investment Appraisal ? Evaluating Foreign Direct Investments ? Purchasing Power Parity Theory Knowledge checklist Able to explain and justify the assumptions about organizational objectives that underlies most of the conventional wisdom in corporate finance; Able to discuss the different objectives that are likely to be pursued by different typed of organization e.g quoted companies,not for profit organizations such as charities and state owned enterprises；(particular the change in objective that is likely to result from the tra -nsition of ownership) Able to discuss issues of corporate governance and be familiar with the recommendations of the Carbury Committee ， Greenbury Committee and the Hampel Committee; Able to describe the three forms of the Efficient Market Hypothesis and discuss their signif -icance for financial managers; Able to do NPV calculations and IRR ，calculations to evaluate a foreign direct investment by calculating its NPV; Able to understand the nature and significance of project cash flows and parent cash flows ; Able to forecast future exchange rates based on purchasing power parity theory. （二）Content: ? Risk in investment appraisal ? Traditional approaches to risk ? Introduction to Portfolio Theory ? Two asset portfolios and multi asset portfolios ? The Capital Asset Pricing Model ? Gearing and ungearing betas Knowledge checklist Able to calculate the expected return and the variance of a probability distribution and the covariance between two probability distributions; Able to calculate the risk and return of a two portfolio where the data input into the formula is provided and where it is not;Able to explain the concept of risk reduction through diversification and discuss its significance Able to do simple calculations of the risk and return of multi asset portfolios but only where they comprise independent investments; Able to understand the practical problems in the use of portfolio theory for evaluating investment opportunities; Able to understand the components of the basic CAPM formula and to explain how they can be found in practice，to appreciate the significance of the CAPM in term of the practical limitations of portfolio theory; Able to explain what a beta value measures which means，to understand the difference between systematic and unsystematic risk; Able to do the calculations to ungear and regear a beta; Able to know about equity betas, asset betas, debt betas, geared betas and ungeared betas, and to know what they measure,how they are calculated and when they are used; Able to explain and discuss potential conflicts between Portfolio Theory and CAPM in the evaluation of investment opportunities. （三）Content ? The cost of Capital ? The cost of equity ? Simple cost of debt calculations ? WACC Knowledge checklist Able to explain the rationale for the use of the WACC in project appraisal; Able to calculate the cost of equity using both the dividend valuation model and the CAPM; Able to explain the reasons for different estimates of the cost of equity using the two models; Able to calculate the cost of both dated and undated loan stock which means, Able to do IRR calculations and to calculate a WACC. （四）Content ? More complex cost of debt calculations ? Cost of convertibles ? The cost of foreign currency denominated loan ? The limitations to the use of the WACC in project appraisal ? Project specific WACCs ? A WACC for overseas investment Knowledge checklist Able to calculate the cost of loan stock with variable redemption dates and those with interest which is not payable annually; Able to calculate the sterling equivalent cost of a foreign currency denominated loan; Able to understand the nature of convertible loan stocks and the problems of estimating the cost of a convertible; Able to understand the theoretical limitations to the use of the WACC in project evaluation and to calculate a project specific WACC; Able to calculate a WACC for evaluating an overseas investment and to understand the significance of international diversification. （五）Content ? Adjusted present values ? Financial decisions ? The Modigliani and Miller hypotheses ? Practical aspects of the financing decision ? Dividend policy Knowledge checklist able to understand the relationship between financing and investment decision; Able to calculate an adjusted present value (APV); Able to explain the fundamental issue with respect to financing decisions i.e. it is possible to increase the value of the business through it`s financing decisions; Able to understand the MM capital structure hypotheses both with and without tax; Able to explain the extensions to the basic MM analysis provided by Miller(personal tax) and Brealy and Myers(the costs of financial distress and agency costs); Able to use the MM formula to calculate the value of a geared company together with the cost of equity and the WACC; Able to understand the practical aspects of the financing decision and to calculate the impact of financing decisions on both gearing (and it`s significance) and EPS; Able to explain and discuss the significance of the dividend irrelevancy hypothesis. （六）Content ? Business plan ? Management of cash ? Performance evaluation and ratio analysis ? Strategic planning ? Valuation of shares and business Knowledge checklist Able to explain procedures for both short term(largely cash) and strategic (long term) planning; Able to explain the sources and uses of short term cash and the significance of cash management within an international context; Able to evaluate the performance of a business or part of a business using ratios; Able to place a value on a business or share using a variety of methods( include, but not restricted to, the dividend valuation model, the use of dividend yields and P.E. ratios and asset based valuation model ). |
发表于 2009-5-26 10:33
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