Finance 12

Finance Notes of Grade 12.

Are you looking for complete Grade 12 Finance Notes?
Here it is!
Have a look on chapters list below and the link attached to it.
You will have access to complete notes of Theory Chapters.

Chapter No.Chapter NameExercise
1.Introduction to Business FinanceNotes
2.Financial Statements and ReportingNotes
3.Financial Analysis (Numerical Unavailable)Notes
4.Sources of FundNotes
5.Capital StructureNotes
6.Bond and Stock ValuationNotes
7.Capital Investment DecisionNotes
8.Working Capital and Current Assets ManagementNotes
9.Dividend and Dividend Payment ProcedureNotes
10.International Finance Notes
Syllabus :
  1. Introduction to Business Finance
    – An Overview of Business Finance
    – Relationship of Finance with Economics and Accountancy
    – Roles and Responsibilities of Financial Manager
    – Ethical Concerns in Financial Decision
  2. Financial Statements and Reporting
    – Nature of Financial Statements
    – Need for Financial Statements
    – Major Components of Financial Statements
    – Common Size Statements
    – Annual Report and It’s major components
    – Users of Financial Statements
  3. Financial Analysis
    – Users and Importance of Financial Ratio Analysis
    – Concept of Index Analysis
    – Types of Ratios:
    Liquidity (Current Ratio, Quick Ratio), Turnover (Inventory Turnover Ratio, Receivable turnover Ratio, Fixed Assets Turnover Ratio, Total Assets Turnover Ratio), Leverage (Debt Ratio, Debt to assets Ratio, Equity Multiplier), Profitability (Net Profit Margin, Gross Profit Margin, Return on Assets, Return on Equity) and Market Value (Price-Earnings Ratio, Market to Book Value Ratio)
    – Du Pont System
    – Limitations of Ratio Analysis
  4. Sources of Fund
    – Sources of Capital:
    On the basis of Time (Short term and Long Term)
    On the basis of Ownership (Owner’s Funds and Borrowed Funds)
    – Short Term Sources (Types, Advantages and Disadvantages)
    – Debt (Features, Advantages and Disadvantages)
    – Preferred Stock (Features, Advantages and Disadvantages)
    – Common Stock (Features, Advantages and Disadvantages)
  5. Capital Structure
    – Capital Structure and Financial Structure
    – Meaning and Features of Optimum Capital Structure
    – Concept of Business risk and Financial Risk
    – Break Even Analysis: Determining Operating BEP
  6. Bond and Stock Valuation
    – Meaning and Key characteristics of Bonds
    – Valuation of Bonds: Perpetual Bonds, Zero coupon bonds, coupon bond with finite maturity
    – Bonds with semi-annual Coupons
    – Meaning and Key Features of Common Stock
    – Book Value of Common Stock
    – Common stock valuation: Single Holding periods, Multiple Holding Periods
    – The dividend discount model: Zero growth model and Constant growth model
  7. Capital Investment Decision
    – Concept, Features and Importance of INvestment Decisions
    – Types of Investment proposals: Indepedent, Dependent, Mutually Exclusive, Expansion, Diversification and Replacement.
    – Steps involved in the evalutaion of investment
    – Payback Period and Net Present Value
  8. Working Capital and Current Assets Management
    – Concept and Types of Wroking Capital
    – Importance of Working Capital
    – Determinants of Working Capital
    – Gross working capital and net working capital
    – Cash Conversion cycle
    – Current Assets management: Concept and Importance of cash management, receicable manegement and Inverntory Manegement
  9. Dividend and Dividend Payment Procedure
    – Concept and forms of dividend
    – Dividend Payment Schemes: Stable, constant pay-out and low regular plus extra
    – Dividend Payment Procedure
    – Factors influencing Dividend Decision
  10. International Finance
    – Multinational Corporations
    – Multinational v/s domestic financial management
    – Exchange rates and quotation
    – Components of Cross Exchange rate
    – Trading in foreign exchange: Concepts of Spot rate and forward rates.