Introduction to Cash Flow
In class discussion:
This section reviews fundamental information about cash flows and the importance of incremental after-tax cash flows in various financial valuation and financial decision making processes. The concepts learned are required in order to understand and master the material in later sections covering capital budgeting, investment analysis, and valuation procedures.
Text Readings and Assignments:
Fundamentals of Financial Management, by Eugene F. Brigham & Joel F. Houston, 11th. edition, (Thomsom - South-Western)
ISBN: 0324319800
Assigned Readings: Chapter 3 (pp. 24-54)
| Component | Chapter Sections: |
Pages |
Questions |
Self Test |
Problems |
| Topics | 3.1 to 3.10 | 64 - 87 | |||
| Assignments | 90 - 95 | 1,2,3,5,7,8,10 | 1,2 | 2,3,4,5,6,7,8,10,11,12,13 |
Solutions to assigned Questions and Problems are available in MS WORD format here.
Dr. Constand's Online Readings:
The links below will take you to summaries of the professors' notes and discussions on the topics.
Introduction to Incremental After-tax Operating Cash Flows
Notes on Calculating Incremental After-tax Operating Cash Flows (a PDF document)
Other Online Readings and Assignments:
An overview of the importance of cash flow for investment analysis.
Jump to another topic in this module:
Incremental After-Tax Cash Flow
Debt - Valuation and Rates of Return
Equity - Valuation and Rates of Return
Calculating the Weighted Average Cost of Capital
Capital Budgeting - Valuation of Investment Projects