Capital reconstruction, mergers and acquisitions, capital rationing, mutually exclusive

investment, tax influence and investment incentives. Gearing theories, traditional view, the

Modiglian Mill hypothesis, borrowing limits, dividends and retention policies. Capital

investment decisions-investment criteria-payback, rate of return on capital, DCF, NPV, IRR,

profitability index, uncertainty and risk analysis. (Same as BFN 323).

Level of Study: 400 Level