Business, administration and law

Permanent URI for this collection

https://oermu.uom.ac.mu/handle/1/66

Browse

Browsing Business, administration and law by Author "Mrs Kiran Odit Dookhan"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Principles of Finance
    (2025) Mrs Kiran Odit Dookhan
    Chapter 1 introduces finance as both an art and a science, focusing on money management, financial institutions, markets, and instruments, and distinguishing finance from accounting by emphasizing its role in increasing owner wealth. Chapter 2 elaborates on the time value of money, presenting techniques for calculating future and present values of single amounts and various annuities, as well as methods for determining unknown variables in cash flow streams. Chapter 3 delves into the valuation of long-term securities, specifically bonds and stocks, explaining their features, valuation processes, and the calculation of expected rates of return and yield to maturity. Chapter 4 explores the fundamental concepts of risk and return, covering the quantification of expected returns and risk using probability distributions, risk measurement for individual assets and portfolios, the impact of diversification, and the Capital Asset Pricing Model (CAPM). Chapter 5 focuses on capital budgeting methodologies, discussing the challenges of identifying profitable projects and outlining various evaluation techniques such as payback period, Net Present Value (NPV), Average Accounting Rate of Return, and Internal Rate of Return (IRR), while also highlighting ethical considerations. Finally, Chapter 6 provides an overview of different sources of finance available to businesses, including common stock, retained earnings, various forms of debt, and other financing options, detailing their characteristics, suitability, advantages, and disadvantages.