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Question Financial Management (Take home Assignment) (Aim: Understanding different concepts and their application/implications) 1. 2. 3. 4. 5. 6. 7. 8. Discuss the Financial Management

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Question Financial Management (Take home Assignment) (Aim: Understanding different concepts and their application/implications) 1. 2. 3. 4. 5. 6. 7. 8. Discuss the Financial Management Decisions Distinguish between profit objective and wealth maximization objective Discuss the areas of finance Discuss the Link between CA, CL, NCA, NCL and the financing decisions Know when to use horizontal and common size Financial statement analysis, its application and interpretations as well as their limitations What is the tradeoff between working capital, cash conversion cycle Describe the tradeoff between working capital to liquidity and profitability Capital structure: relationships between Debt on EPS, ROE, and Share price, why investors prefer Debt Bond-, relationship between interests, coupon rate, Yield to Maturity. Know the implications on the bond price. Ordinary Annuity preferred by for borrowers and Annuity due preferred by lender. Discuss Discuss how debt affect the value of Share price and ROE and EPS Mutually exclusive Project and Stand-alone Project. How to use the NPV and the IRR to select the project 9. 10. 11. 12. Question Financial Management (Take home Assignment) (Aim: Understanding different concepts and their application/implications) 1. 2. 3. 4. 5. 6. 7. 8. Discuss the Financial Management Decisions Distinguish between profit objective and wealth maximization objective Discuss the areas of finance Discuss the Link between CA, CL, NCA, NCL and the financing decisions Know when to use horizontal and common size Financial statement analysis, its application and interpretations as well as their limitations What is the tradeoff between working capital, cash conversion cycle Describe the tradeoff between working capital to liquidity and profitability Capital structure: relationships between Debt on EPS, ROE, and Share price, why investors prefer Debt Bond-, relationship between interests, coupon rate, Yield to Maturity. Know the implications on the bond price. Ordinary Annuity preferred by for borrowers and Annuity due preferred by lender. Discuss Discuss how debt affect the value of Share price and ROE and EPS Mutually exclusive Project and Stand-alone Project. How to use the NPV and the IRR to select the project 9. 10. 11. 12

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