1) Differences between financial accounting and financial management 2) The main goal of financial management (why maximisation of accounting profit is not suitable as the main goal for a company) 3)  What is meant by "equity has an opportunity cost" 4) Agency relationship (e

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1) Differences between financial accounting and financial management

2) The main goal of financial management (why maximisation of accounting profit is not suitable as the main goal for a company)

3)  What is meant by "equity has an opportunity cost"

4) Agency relationship (e.g. stockholders vs managers) and agency costs and it's association with value maximisation Relationship between Principal and Agent

 5) Describe the potential conflict between shareholders and lenders

6) Try to come up with examples which show that financial markets are quite efficient and with some examples where they are clearly inefficient.

Financial markets efficient

7) Time value of money: simple vs compound interest, discounting. Present value (PV), Future value (FV)

8) What is effective annual rate (EAR)? Why is this measure important?

 9) Annuities (computation of PVA, FVA, payment)

10) Loan amortization schedule

11) Perpetuities

12) Make sure you understand the main characteristics of bonds

13) Coupon bond: cash flows and valuation

14) Discount bond: cash flows and valuation

 15) What is Yield To Maturity (YTM)?