|Author :||Jae K. Shim, Ph.D., CPA|
|CPE Credits :||7.0|
|IRS Credits :||0|
|Passing Score :||70%|
|Primary Subject-Field Of Study:||
Finance - Management for Course Id 171
Finance involves obtaining, using, and managing funds to achieve the company’s financial objectives (e.g., maximization of shareholder value). The course is a primer that emphasizes and develops an understanding of financial concepts, tools, strategies, and major decision areas related to the financial management of the business.
|Usage Rank :||0|
|Prerequisites :||Basic math
|Experience Level :||Overview|
|Additional Contents :||Complete, no additional material needed|
|Additional Links :|
|Advance Preparation :||None|
|Delivery Method :||Self-Study|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE)|
|Revision Date :||18-Sep-2012|
|NASBA Course Declaration :||Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.|
|Approved Audience :||
NASBA QAS - NASBA Registry - 171
|Keywords :||Finance, Financial, Concepts, Tools, Managers, cpe, cpa, online course|
|Learning Objectives :||
2. Define the concepts of finance.
3. List and discuss basic forms of business organizations.
4. Describe the role of the various financial institutions and markets.
5. Demonstrate and calculate the depreciation methods.
6. Outline the basic concepts associated with federal corporate taxation.
2. Explain the stockholders’ equity section of the balance sheet.
3. Identify and discuss the statement of cash flows.
4. Differentiate between horizontal and vertical analysis.
5. Calculate liquidity ratios.
6. Describe and calculate activity ratios.
7. Explain and give examples of solvency and debt service ratios.
8. Recognize and enumerate examples of profitability ratios.
9. Explain the Du Pont system.
10. Classify and interpret market value ratios.
11. Elaborate and clarify the limitations of ratio analysis.
2. Explain the concepts of financial forecasting.
3. Outline the computational steps involved in the percent-of-sales method.
4. Demonstrate the format associated with cash budgeting.
2. Describe the benefits of cash management.
3. Demonstrate the uses of various cash management models.
4. Define and give examples of marketable securities.
5. Manage accounts receivable.
6. Implement an inventory management system.
2. Interpret the concept of portfolio theory.
3. Give examples of market index models.
4. Illustrate and discuss the Capital Asset Pricing Model (CAPM).
5. Explain beta’s role in assessing a security’ risk.
6. Discuss and define return.
7. Explain the concept of the risk-return trade-off.
8. Describe how to value a bond.
9. Calculate bond yield and the effective rate of return on a bond.
10. Explain the concept of term structure of interest rates.
11. Describe common stock valuation.
2. Apply the time value concept to financial decision situations.
3. Discuss what capital budgeting is.
4. List and define each of the various evaluation methods.
5. Define mutually exclusive investments.
6. Evaluate a lease versus purchase decision.
7. Allocate a limited budget to capital investment projects.
8. Explain the role of inflation in an investment decision.
9. Discuss how to incorporate risk in capital investment decisions.
2. Compute and explain the cost of equity capital.
3. Explain the level of financing and the marginal cost of capital (MCC).
4. Calculate and discuss break-even analysis.
5. Compute and explain the cash break-even point.
6. Discuss and give examples of leverage.
7. Detail the use of operating leverage.
8. Articulate the concept of financial leverage.
9. Discuss the theory of capital structure.
10. Implement the EBIT-EPS approach to capital structure.
2. Define stock splits.
3. Discuss various dividend policies.
2. Use trade credit.
3. Identify the types of short-term bank loans.
4. List other sources of financing.
5. Describe the process of accounts receivable financing.
6. Explain how to obtain inventory financing.
2. Explain the function and responsibility of Small Business Administration.
3. List the pros and cons of leasing.
2. Make a bond refunding decision.
2. Differentiate between public versus private placement of securities.
3. Identify and explain the role and rights of stockholders.
4. List and define the conditions and limitations of preferred stock.
5. Explain the benefits and risks associated with common stock.
6. Clarify and elaborate on stock rights.
7. Identify and give examples of stock repurchases.
8. Describe and implement a process for margin trading.
9. Utilize short selling in a down trend market.
10. List and define governmental regulations.
11. Articulate the concept of an efficient market theory.
12. Define and give examples of convertible securities.
13. Explain the uses of stock warrants.
2. Explain the uses and benefits of a holding company.
3. Explain how to implement tender offer.
2. State how to file for bankruptcy and reorganization.
3. Discuss how to use derivatives (options and futures) to manage risk.
4. Outline the Black-Scholes option pricing model.
5. Discuss the financial risks associated with doing business globally.
|Course Contents :||
Module 1: The Basics
1. What is finance?
2. Basic forms of business organizations
3. Financial institutions and markets
4. Depreciation methods
5. Federal corporate taxation
Module 2: Financial Statement Ratios
6. Basic financial statements
7. Stockholders’ equity section of the balance sheet
8. Statement of cash flows
9. Horizontal and vertical analysis
10. Liquidity and liquidity ratios
11. Activity ratios
12. Solvency and debt service ratios
13. Profitability ratios
14. Du Pont system
15. Market value ratios
16. Limitations of ratio analysis
Module 3: Budgeting and Forecasting Financing Needs
18. Financial forecasting and the percent-of-sales method
19. Cash budgeting
Module 4: Managing Working Capital
20. Working capital management
21. Cash management
22. Cash management models
23. Marketable securities
24. Management of accounts receivable
25. Inventory management and just-in-time (JIT)
Module 5: Security, Bond, and Asset Valuation
27. Portfolio theory
28. Market index models
29. Capital asset pricing model (CAPM) and arbitrage pricing model (APM)
32. The risk-return trade-off
33. Bond valuation
34. Bond yield—effective rate of return on a bond
35. Term structure of interest rates
36. Common stock valuation
Module 6: Time Value of Money and Capital Budgeting
37. Time value of money and its applications
38. Capital budgeting
39. Accounting rate of return
40. Payback period
41. Net present value method
42. Profitability index
43. Internal rate of return (IRR)
44. Mutually exclusive investments
45. Lease-purchase decision
46. Capital rationing
47. Capital budgeting and inflation
48. Risk analysis in capital budgeting
Module 7: Determining Cost of Capital and Capital Structure Decisions
49. Cost of capital
50. Computing the cost of equity capital
51. Level of financing and the marginal cost of capital (MCC)
52. Break-even analysis
53. Cash break-even point
55. Operating leverage
56. Financial leverage
57. Theory of capital structure
58. EBIT-EPS approach to capital structure
Module 8: Dividends and Stock Splits
59. Cash dividends
60. Stock dividends and stock splits
61. Dividend policy
Module 9: Short-Term Financing
62. Financing strategy
63. Trade credit
64. Short-term bank loans
65. Other sources of financing
66. Accounts receivable financing
67. Inventory financing
Module 10: Term Loans and Leasing
68. Intermediate-term bank loans
69. Small Business Administration
Module 11: Long-Term Debt
71. Long-term debt financing
72. Bond refunding
Module 12: Stock, Convertibles, and Warrants
73. Investment banking
74. Public versus private placement of securities
76. Preferred stock
77. Common stock
78. Stock rights
79. Stock repurchases
80. Margin trading
81. Short selling
82. Governmental regulation
83. Efficient market theory
84. Convertible securities
85. Stock warrants
Module 13: Mergers and Acquisitions
86. Mergers and acquisitions
87. Holding company
88. Tender offer
Module 14: Options and Option Pricing, Derivatives and Risk Management, and International Finance
89. Voluntary settlement
90. Bankruptcy and reorganization
91. Derivatives (options and futures) and risk management
92. The black-scholes option pricing model
93. International finance