- NY Credits : 6.0
- TX Credits : 6.0
Every day in business, managers are faced with making key decisions that impact the future of their companies. Determining whether or not a capital investment should be undertaken is one of the most important strategic decisions a company can make. These decisions often determine whether a company enters a new market, develops a new product, or makes an acquisition. Such decisions affect, not only those making the decisions, but all those who have to live with the results of those decisions. A wrong decision can cost a company millions and employees, their livelihoods. This basic level course is most beneficial to professionals new to this subject who may be at the staff or entry level in organization but also for a seasoned professional with limited exposure to this topic.
Upon successful completion of this course, the user should be able to:
recognize the importance of using cash flows for financial projections,
identify different financial models,
recognize the different alternatives available to calculate the cost of equity and cost of debt,
recognize why weighted average cost of capital should be based upon market values rather than book values,
identify sunk, committed, and fixed costs,
recognize incremental and differential cash flows and their impact on capital budgeting decisions,
recognize what post audits are,
identify when post audits should be performed,
identify the composition of working capital and why it is important to manage it,
recognize the importance of adequate training and staffing in the credit and collections department,
recognize how to use net present value to evaluate potential acquisition decisions, and
identify the importance of objectivity when evaluating any target company.