Part 1
Content:
 Organizational Objectives
 Corporate Governance
 Concepts of Market Efficiency
 Basic Investment Appraisal
 Evaluating Foreign Direct Investments
 Purchasing Power Parity Theory
Knowledge checklist
Able to explain and justify the assumptions about organizational objectives that underlies
most of the conventional wisdom in corporate finance;
Able to discuss the different objectives that are likely to be pursued by different typed of
organization e.g quoted companies,not for profit organizations such as charities and state
owned enterprises；(particular the change in objective that is likely to result from the tra
-nsition of ownership)
Able to discuss issues of corporate governance and be familiar with the recommendations of
the Carbury Committee ， Greenbury Committee and the Hampel Committee;
Able to describe the three forms of the Efficient Market Hypothesis and discuss their signif
-icance for financial managers;
Able to do NPV calculations and IRR ，calculations to evaluate a foreign direct investment
by calculating its NPV;
Able to understand the nature and significance of project cash flows and parent
cash flows ; Able to forecast future exchange rates based on purchasing power parity theory. |
