1). Goals:
At the end of the course students should be able to:
· Define, describe and differentiate the components of the cash flows from the operating activities. More precisely, the students should be able to define, describe and differentiate the different computation methods of the working capital need.
· Define, describe and differentiate the components of the cash flows from the investment activities and more precisely the components of the investment in a new inventory and the investment in the credit policy.
· Compute and interpret the notion of “return on investment” (ROI)
· Define, describe and differentiate the components of the cash flows from the financing activities and compute the return on equity, the cost of equity, the financial leverage and the cost of debt
2) Course outline:
Cash flows from the operating activities
Cash flows from the investment activities
Cash flows from the financing activities
Cash flow statement