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Part 02:1. Discounting and Future valuing2. Simple Annuity 3. Simple Perpetuity 4. Perpetuity with growth

0. Orientation & Overview

1. Basic concepts of Financial Management

2. Cost and Value of Equity

Lecture 02

  • 1. Concept of capital
    2. Concept of Equity & Debt
    3. Value vs Price
    4. Cost & Value of Equity using Dividend Valuation method (DVM)
    5. No growth & Constant growth DVM
    6. Cost of Equity using Capital Asset Pricing Method (CAPM)
    Buy

Lecture 02 B

  • Future value of annuityBuy

Lecture 03

  • 1. Cum-div and Ex-div share price
    2. Variable growth DVM
    3. Estimating dividend growth rates using Gordon growth and Historic growth models
    4. DVM based on Interim dividends
    5. Impact of Personal & Corporate taxation in DVM and Financial Management
    6. Components & explanation of CAPM
    Buy

Lecture 04

  • 1. Basics of Debt
    2. Computing Value of debt
    3. Cost & Value of Bank loans / Simple loans
    4. Cost of debt vs Yield on debt
    Buy

3. Cost & Value of Debt and the WACC

Lecture 05 [UPDATED]

  • 1. Using IRR to estimate Cost of debt
    2. Cost & Value of Traded redeemable bonds
    3. Cost & Value of Non-traded redeemable bonds
    Buy

Lecture 06 [UPDATED]

  • 1. Cost & Value of Convertible bonds
    2. Cost & Value of Deep discount bonds / Zero coupon bonds
    3. Cost & Value of Foreign loans / bonds
    4. Exchange rate prediction based on purchasing power parity
    Buy

Lecture 07

  • 1. Cost & Value of Irredeemable Pref shares
    2. Cost & Value of Redeemable Pref shares
    3. Cost & Value of Debt redeemable at MV ruling at the day of redemption
    4. Cost & Value of Floating rate loans / bonds
    5. Term structure of interest rates
    Buy

Lecture 08

  • 1. Cost & Value of Bonds with mid-life conversion feature
    2. Weighted average cost of capital (WACC)
    a. Mathematical computation
    b. Logical significance
    Buy

4. Basic Investment Appraisal

Lecture 09 [UPDATED]

  • 1. WACC (continued)
    2. NPV
    a. Basics
    b. Tax
    c. Real & Nominal cashflows
    d. Relevant cashflows
    Buy

Lecture 10

  • 1. NPV
    a. Relevant cashflows
    b. Working capital
    Buy

Lecture 11

  • NPV
    a. Working capital
    b. Cashflows with differing intervals
    c. Cashflows evenly over period
    Buy

Lecture 12

  • NPV
    a. Changing discount rates
    b. Complex cashflows calculations
    c. Probability & uncertainty
    d. Decision trees
    Buy

Lecture 13

  • NPV
    a. Decision trees
    b. Sensitivity analysis
    c. Profitability index
    Buy

Lecture 14

  • 1. IRR
    2. MIRR
    3. Monte carlo simulation
    Buy

Lecture 15

  • Part 01:
    1. Target NPV with missing revenue / fee / cashflow
    2. Target IRR with missing revenue / fee / cashflow
    Buy
  • Part 02:
    1. Target NPV with missing revenue / fee / cashflow
    2. Target IRR with missing revenue / fee / cashflow
    Buy

Lecture 15 B

  • Future value of annuity with growthBuy

Lecture 16 [UPDATED]

  • 1. Ill-liquidity premium
    2. Lease & Sale pricing in Target NPV / IRR Questions
    3. ROCE / ROI / ARR
    4. Economic Value Added
    5. Efficient market hypothesis
    6. Impact of financial risk on WACC / NPV / Value
    7. Traditional theory of capital structure
    Buy

5. Advanced Investment Appraisal

Lecture 17

  • 1. Traditional theory of capital structure
    2. M&M theory of capital structure
    Buy

Lecture 18 [UPDATED]

  • 1. M&M theory of capital structure – Advanced concepts
    2. Hamada equation
    3. Pureplay method
    Buy

Lecture 19

  • 1. Pureplay method – Advanced concepts
    2. Cashflow lost vs Opportunity cost in Inv appraisal
    3. Terminal value
    Buy

Lecture 19 B [NEW LECTURE]

  • Terminal ValueBuy

Lecture 20

  • Adjusted present valueBuy

Lecture 21 [UPDATED]

  • Adjusted present value – Advanced conceptsBuy

Lecture 22

  • 1. International investment appraisal
    a. Determining foreign cashflows
    b. Conversion of cashflows to local currency
    c. Tax
    d. Repatriation restrictions
    e. Country risk premium in CAPM
    Buy

Lecture 23

  • 1. International investment appraisal
    a. Country risk premium in CAPM
    b. Transfer pricing with Foreign operation
    Buy

Lecture 23 B [NEW LECTURE]

  • W 2021 Q2 (NEW LECTURE)Buy

Lecture 23 C [NEW LECTURE]

  • S 2022 Q3 (NEW LECTURE)Buy

Lecture 23 D [NEW LECTURE]

  • S 2022 Q4 (NEW LECTURE)Buy

Lecture 23 E [NEW LECTURE]

  • Computer Based Exam Practice S21 Q4Buy

Lecture 23 F [NEW LECTURE]

  • Computer Based Exam Practice S23 Q3Buy

Lecture 23 G [New Lecture]

  • Computer based exam practice - W 22 Q1Buy

6. Portfolio theory

Lecture 24

  • 1. What is portfolio theory
    2. Risk & Return of a security
    3. Risk & Return of a portfolio 2, 3 or higher count of securities
    4. Correlation and Covariance of returns
    Buy

Lecture 25 [UPDATED]

  • 1. Calculating Beta Equity
    2. Methods to assess optimal portfolio
    a. Co-efficient of variation (simple; benchmarked)
    b. Sharpe ratio
    c. Treynor ratio
    d. CAPM / Alpha values
    Buy

Lecture 26 [UPDATED]

  • 1. Mutual funds business
    2. Capital markets
    3. Stock market indices and their types
    4. How are stock index points calculated
    5. Introduction to business valuation
    6. Multiples based valuation (PE, Revenue, EBITDA multiple)
    7. FCF based valuation – basics
    Buy

7. Business Valuation

Lecture 27

  • 1. Merger of companies
    2. Merged valuation, synergies & benefits
    3. Computing Merged WACC
    Buy

Lecture 28

  • 1. Demerger of companies
    2. Demerged company valuation, synergies & benefits
    3. Computing demerged WACC
    4. Valuation of companies by a Venture capitalist
    5. Valuation of company / shares under IPO scenario
    Buy

Lecture 28 B [NEW LECTURE]

  • Determining value of intangibles using super profits and other methods Buy

Lecture 29

  • 1. Foreign acquisition
    a. FCF of foreign company
    b. Repatriation restrictions
    c. WACC computation
    2. Matters considered in a business combination by acquirer / acquire shareholders
    Buy

Lecture 29 B [NEW LECTURE]

  • Common steps and due diligence in merger or acquisition scenarioBuy

Lecture 29 C [NEW LECTURE]

  • Bidding strategy discussions in Business Valuation QuestionsBuy

Lecture 29 D [NEW LECTURE]

  • Shareholder value analysisBuy

Lecture 30 [UPDATED]

  • 1. Impact of market efficiency type on business valuation
    2. Comparing target companies for acquisitions
    3. Ill-liquidity premium
    4. Computing max price that can be paid for acquisition
    Buy

Lecture 31 A [NEW LECTURE]

  • W 2021 Q1 (NEW LECTURE)Buy

Lecture 31 B [NEW LECTURE]

  • S 2022 Q2 (NEW LECTURE)Buy

Lecture 31 C [NEW LECTURE]

  • Computer based exam practice - S 21 Q5Buy

Lecture 31 D [NEW LECTURE]

  • Computer based exam practice - S 23 Q1Buy

Lecture 31 F [New Lecture]

  • Computer based exam practice - W 22 Q2Buy

Lecture 31 G [NEW LECTURE]

  • Computer based exam practice - W 22 Q5Buy

8. Certain financial decisions (Lease vs Buy, Capital rationing, Asset replacement)

Lecture 32 [UPDATED]

  • 1. Asset based valuation – Book value, Net realizable value, Forced sales value
    2. Dividend valuation method
    3. Price to Book ratio method
    4. Earning yield method
    5. Dividend yield method
    6. Super profits method of valuation
    7. Summarizing all types of business valuation Qs. that may occur in exam
    8. Asset replacement decision
    a. Real cashflows & Real rate
    b. LCM method
    c. Bifurcated Real PV & WACC method
    Buy

Lecture 33

  • 1. Single period capital rationing
    2. Lease vs Buy vs Rent
    Buy

Lecture 33 B [New Lecture]

  • Merging lease vs buy and asset replacement decisionBuy

Lecture 33 C [New Lecture]

  • Determining present value loss from left over funds in capital rationingBuy

Lecture 34

  • 1. Termination of lease
    2. Computing lease rentals using lessor’s IRR
    3. Linear programming – Limiting factor problems
    Buy

Lecture 35

  • 1. Critical resource & Slack computation
    2. Shadow price / Dual value computation
    3. Multi-period capital rationing using Linear programming
    Buy

Lecture 35 B [NEW LECTURE]

  • W 2021 Q4 (NEW LECTURE)Buy

9. Currency Risk & Hedging

Lecture 36

  • 1. Foreign exchange risk
    2. What are exchange rates
    3. Direct & Indirect quotes
    4. Spot & Forward quotes
    5. Cross rates
    6. Currency forwards
    7. Currency futures
    Buy

Lecture 37

  • 1. Basis in futures
    2. Basis evolution & effective lock-in rates
    Buy

Lecture 38

  • 1. Local currency futures
    2. Money market hedge
    3. Netting & Matching
    4. Multi-lateral netting
    5. Currency options
    Buy

Lecture 39 [UPDATED]

  • Part 01
    1. Currency options
    2. Forex swaps
    3. Currency swaps
    4. Currency swaptions
    5. Leading & Lagging
    Buy
  • Part 02
    1. Currency options
    2. Forex swaps
    3. Currency swaps
    4. Currency swaptions
    5. Leading & Lagging
    Buy

Lecture 39 B [New Lecture]

  • Group & CF settlements in currency risk hedgingBuy

Lecture 39 C [New Lecture]

  • Computer based exam practice - S 23 Q4Buy

10. Interest Rate Risk & Hedging, Commodity & Security Hedging

Lecture 40 [UPDATED]

  • 1. Exchange rate management by Govt
    2. Exchange rate prediction techniques
    3. 4 way equivalence
    4. REER & NEER
    5. Interest rate risk
    6. Forward rate agreements
    7. Interest rate futures
    Buy

Lecture 41

  • 1. Basis & Effective lock-in rates in Interest rate futures
    2. Interest rate swaps
    3. Options on Interest rate futures
    Buy

Lecture 42

  • 1. Interest rate swaps via intermediary
    2. Interest rate swaptions
    3. Tick size
    4. Commodity & security forwards
    5. Commodity & security futures
    Buy

Lecture 42 B [NEW LECTURE]

  • W 2021 Q5 (NEW LECTURE)Buy

Lecture 42 D [New Lecture]

  • Computer based exam practice - W 22 Q3Buy

Lecture 42 C [New Lecture]

  • Computer based exam practice - S 21 Q3Buy

11. Dividend and Financing Decisions

Lecture 43 [UPDATED]

  • 1. Dividend decision
    a. Practical influences on div policy
    b. Types of div policy
    c. Computing optimal div pay-out
    d. Managing finance out of div
    e. Dividend irrelevance theory
    2. Theoretical ex-right price and value of a right
    Buy

Lecture 43 B [New Lecture]

  • Shareholder expectations and other factors influencing dividend decisionBuy

Lecture 43 C

  • Computer based exam practice - S 23 Q5Buy

Lecture 44

  • 1. Comparison of financing options
    2. Financing costs method of comparison
    3. Cashflows / NPV method of comparison
    4. Market value using PE or DVM method of comparison
    Buy

Lecture 44 B [NEW LECTURE]

  • S 2022 Q5 (NEW LECTURE)Buy

Lecture 44 C

  • Computer based exam practice - S 23 Q2Buy

12. Liquidity risk management

Lecture 45 [UPDATED]

  • What is Liquidity Risk?
    Liquidity indicators
    Tools to manage Liquidity risk
    Relationship between Liquidity & Working capital management
    Working capital management
    Buy

Lecture 46

  • Managing liquidity through working capital
    MAC S14 Q2
    MAC W16 Q4
    BFD S19 Q3
    Buy

Lecture 47

  • Liquidity stress testing
    Contingency funding plan
    Cashflow forecasting
    S 2021 Q2
    Buy

Lecture 47 B [New Lecture]

  • Computer based exam practice - S 21 Q2Buy

13. Credit risk management

Lecture 48

  • What is Credit risk?
    Credit risk analysis – Using ratios
    Credit risk analysis – Credit rating
    Credit risk analysis – Complicated tools
    Credit risk management – Financial institutions vs Other Entities
    Receivables management
    MAC S13 Q1
    Buy

Lecture 49

  • Credit risk management through Insurance
    Credit risk management through Factoring
    MAC S-12 Q6
    BFD W-19 Q1
    BFD W-17 Q4
    Buy

14. Certain Decision making scenarios

Lecture 50

  • 1. High / Low analysis
    2. Process costing (revision)
    3. Pricing for special orders
    a. Special order – Relevant cost working
    b. Tabular approach to general pricing decisions
    c. Marginal revenue & marginal cost approach to general pricing decisions
    Buy

Lecture 51 [UPDATED]

  • 1. Make or buy decisions
    2. Further processing decisions
    Buy

Lecture 51 B [New Lecture]

  • Computer based exam practice - S 21 Q1Buy

15. Arbitrage pricing theory

Lecture 52

  • Arbitrage pricing theoryBuy

16. Revision + Exam Handling Tips

Lecture 54

  • Revision + Exam HandlingBuy

17. MSA-2 practice questions for BFD

Lecture 55

  • MSA2 example for BFD students - W21 Q2Buy

Lecture 56

  • MSA2 example for BFD students - W21 Q3Buy

Lecture 57

Lecture 58

Lecture 59

Lecture 60

Lecture 61

Lecture 62

Lecture 63

Lecture 64

  • BFD MSA-2 Summer 2022 practiceBuy

Lecture 65

  • BFD MSA-2 Winter 2022 practiceBuy

Lecture 66

  • BFD MSA-2 Summer 2023 practiceBuy

18. S-2021 Solution

Lecture 53

  • S-2021 Solution Part 1Buy
  • S-2021 Solution Part 2Buy

19. Computer Based Exam Guidance

Lecture 67

  • Basic guidance for CBEBuy

Lecture 68

  • Detailed tips and tricks for CBEBuy

20. Revision Series

Lecture 69

  • BFD - Winter 2022 - Q_A session 1 (Part 1)Buy

Lecture 70

  • BFD - Winter 2022 - Q_A session 1 (Part 2)Buy

Lecture 71

  • BFD - Winter 2022 - Q_A session 2Buy

Lecture 72

  • BFD - Winter 2022 - Q_A session 3Buy

Lecture 73

  • BFD - Winter 2022 - Q_A session 4Buy

Lecture 74

  • BFD - Winter 2022 - Q_A session 5Buy

Lecture 75

  • Summer 2023 BFD Live Q_A # 2Buy

Lecture 76

  • Summer 2023 BFD Live Q_A # 3Buy

Lecture 77

  • Summer 2023 BFD Live Q_A # 4Buy

Lecture 78

  • Summer 2023 BFD Live Q_A # 7Buy

Lecture 79

  • Winter 2023 BFD Live Q_A # 1Buy

Lecture 80

  • Winter 2023 BFD Live Q_A # 2Buy

Lecture 81

21. Winter 2023 Exam solution CBE

Lecture 82

Lecture 83

Lecture 84

  • BFD S23 Q4Buy

Lecture 85

  • BFD S23 Q5Buy

Lecture 86