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## PowerPoint Slideshow about ' Managerial Finance' - zayit

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What we will do today (February 11)

- Go over issues from Feb. 4
- Go over problems assigned last week
- Do Chapter 17
- Do cashflow computation and examples with Lifeway Foods, Inc. (LWAY)
- Discuss Quiz 1
- Evaluation

P.V. Viswanath

Issues from February 4

- How to follow cashflows from all activities
- Time value of assets
- Definition and type of cashflows
- Other determinants of growth potential
- Can I begin to think in finance terms?
- Find the values on the statement needed for the equations
- How will the cashflows affect a company’s future?
- What does the change in net working capital etc. mean to management – is it good or bad?
- Why do we need the alternative way of computing cashflows?
- Determining accurate market value of a firm
- Identity vs. definition

P.V. Viswanath

Wishlist from Feb. 4

- Keep door open
- Don’t speak so fast; ask students if they understand
- Explain the calculations for cashflows
- Speed up explanations in class
- More problems practiced in class
- Can’t you just call on volunteers? Don’t call students randomly; I am trying to write down my notes.
- More detailed examples.
- Real-life examples
- End class early

P.V. Viswanath

Quiz 1

- Definitions of terms from Chaps 1, 2, 3, 17
- Computation of cashflow numbers for a firm
- Computation of financial ratios for a firm

P.V. Viswanath

Issues from March 3

-Slow down

-Write more clearly on the board

-A little hurried. I like the examples but they seem rushed

-Make “revised” PowerPoint lecture notes available earlier than the day of class

-Why is your lecture is quite different from the book. How can I concentrate on preparing for exams?

- How to calculate growth rates

P.V. Viswanath

Issues to keep in mind

- Everything we do in class is related to other things.
- When we do present value, you cannot forget financial statements
- Since I want to focus on connections, so sometimes I go ahead. That’s why I went on to the issue of risk.
- We will revisit things that are not clear; that’s why I solicit your comments.
- We will certainly revisit statistics – mean, variance, correlation, etc.

P.V. Viswanath

What we will do March 24

- Finish up Chapter 7 and what we need from Chapter 8.
- Make sure you do all the assigned problems. There are not a lot of new concepts, so I will focus on doing problems.

P.V. Viswanath

Questions from March 10

- Difference between rates
- How to solve problems by myself
- When would knowing the effective rate be useful?
- Post solutions
- Issues with quiz
- Only one question
- Tricky!
- Why did we do problems just before quiz? Do it a week before quiz.
- Less time on quiz; more time on problems.

P.V. Viswanath

Midterm

- Covering material on Chaps 2, 3, 4, 5 (limited to what was covered in class), 6 and 17
- Three sections
- Definitions
- Short Questions
- Problems
- Chap 4 – Present Value
- Chap 3 – Accounting Ratios
- Chap 17 – Cashflow computations
- Chapter 5 – Valuing Bonds
- Valuing Stocks – using only the material that was covered in class

P.V. Viswanath

Midterm

- Concepts you should know (non-exhaustive)
- DuPont Identity
- APR and EAR
- CAPM – just the basics of the formula
- Financial Ratios
- Computation of Cashflows
- Nominal and Real cashflow and interest rates
- Agency Costs and Conflicts of Interests
- Bond Pricing
- Stock Pricing

P.V. Viswanath

Today, March 24 and later

- Go over Chapter 5 – Valuing Bonds
- Focus on problems
- Review sessions on Monday 3/29, Friday 3/26

P.V. Viswanath

Comments from April 14

- Correlation and covariance
- Variance and beta as risk measures
- Beta and variance estimation
- Stick to the book

P.V. Viswanath

Plan for April 28 and May 5

- Risk and Return
- Overview of Capital Structure – Chap. 13, 14 for terminology
- Chap. 15 in class

P.V. Viswanath

What we did this term

- Focus on concepts and application – usefulness for a manager
- Student focus – trying to ensure that the material is understood by students at the right conceptual level
- Sensitivity to what students have understood, what they have not understood.
- Special extra sessions

P.V. Viswanath

What we did this term

- Understand what should be the objective of the firm's managers.
- Manipulate formulas based on the time value of money.
- Interpret the firm's financial statements
- Use cash flow information to evaluate a firm/project.
- Use financial statement information to value stocks and bonds
- Decide how to finance a firm on a basic level.

P.V. Viswanath

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