Capital Investment and Dividend Decisions

11 topics

1. Capital Investment Decisions: Objective of capital investment decisions
2. Capital Investment Decisions: Methods of Investment appraisal: Payback period, Discounted payback period
3. Capital Investment Decisions: Methods of Investment appraisal: Accounting Rate of Return (ARR)
4. Capital Investment Decisions: Methods of Investment appraisal: Net Present Value (NPV) - The meaning of NPV, Strengths and limitations of NPV method, The working capital adjustment in NPV analysis, Capital rationing, Equivalent Annual Costs
5. Capital Investment Decisions: Methods of Investment appraisal: Internal Rate of Return (IRR)- Limitations of the IRR method, Multiple IRRs
6. Capital Investment Decisions: Methods of Investment appraisal: Modified Internal Rate of Return (MIRR)- Definition and explanation of MIRR, Process for calculating MIRR, Strengths of the MIRR approach
7. Capital Investment Decisions: Methods of Investment appraisal: Profitability Index
8. Dividend Decisions: Basics of Dividends
9. Dividend Decisions: Cash dividend, stock dividend/ bonus share, stock-splits, share buy back
10. Dividend Decisions: Determinants of dividend
11. Dividend Decisions: Relevancy and Irrelevancy of Dividend Policies- Traditional Approach, Walter’s model, Gordon’s model, Modigliani and Miller (MM) Hypothesis