Capital budgeting. Time value of money. Investment appraisal techniques with emphasis on DCF
analysis. Adjusting for project of unequal lives; effects of taxation and inflation; capital rationing. Real
options in capital budgeting. Capital Structure: MM I and MM II propositions. Theories underlying
why capital structure matters? Cost of capital. Dividend policy: theory and empirical evidence.
Leasing. Mergers and acquisitions. Working capital management. Importance of hedging and hedging
techniques.
