- •Basic principles and content of corporate finance their functions
- •The financial structure of the company. Objectives of financial services corporations.
- •3. The concept of time value of money. Real and future cost of capital.
- •The concept of fixed capital, its structure and role in the organization of the finance corporation.
- •6. Depreciation and its role in the renewal of fixed capital. Depreciation methods.
- •7. Performance indicators of fixed assets.
- •8. The economic content and classification of working capital.
- •10. Sources of working capital. Net working capital.
- •1. Funds from Business Operations:
- •2. Sales of Non-Current Assets:
- •3. Long-Term Borrowing:
- •4. Issue of Additional Equity Capital:
- •11. Cost-effectiveness of working capital using and ways to improve.
- •13. Indicators of costs and reserves ways to reduce them. Planning costs of production and sales.
- •Internal production factors:
- •14. Control over the cost of production and sales. Budgeting.
- •15. Classification and function of income. The total (gross), corporate income, its composition and structure.
- •16. Income from financial and investment activities of the company (different)
- •17. The threshold of profitability (порог рентабельности) and financial margin of safety (финансовый запас прочности).
- •18. Shareholders' equity corporations, its composition and structure.
- •19. Authorized capital. Extra capital. Withdrawn capital.
- •20. Financial assets of the corporation. Undistributed net income (loss). Финансовыеактивыкорпорации. Нераспределенныйчистыйдоход (убыток).
- •21. Types of long-term debt financing.
- •22. Short-term and medium-term financing. Banking and commercial credit. Краткосрочное и среднесрочное финансирование. Банковскийикоммерческийкредит.
- •23. Concept of price and capital structure. Methods of assessing the cost of capital. Понятие цены и структуры капитала. Методы оценки стоимости капитала.
- •24. Leverage capital. Interconnection costs and capital structure of the company.
- •25. Methods of financial analysis. The financial strategy of the corporation.
- •26. Forms of bankruptcy: the settlement agreement, reorganization, liquidation.
- •27. Forms and procedure of reorganization procedures: observation, rehabilitation, reorganization, acquisition, merger.
- •27. Forms and procedure of reorganization procedures: observation, rehabilitation, reorganization, acquisition, merger.
- •28. Financial recovery and crisis management strategy of financial corporations.
- •29. Basic methods of financial planning. Strategic, operational, and the current financial plan.
- •30. System and structure of the financial plan. The procedure for preparation, review and approval of the financial plan.
- •The essence and function of Finance
- •2. The financial system of Kazakhstan.
- •3. Financial policy and financial framework, the socio-economic processes.
- •4. Financial planning and forecasting
- •5. Key areas for improvement of fin planning
- •6. Essence and value of financial control
- •7. Audit control and its features
- •8. Finance of economic entity
- •9. Finance of economic commercial entities (different: Social Insurance)
- •10. Finance non-profit organizations and agencies.
- •11. Socio-economic substance of the state budget. Budget oriented to the result.
- •12. The composition and structure of revenues and expenditures of state budget.
- •The budget deficit and its methods of covering.
- •The budget process.
- •Socio-economic substance of the local budget.
- •16. Local budgets Revenues and Expenditures (different: property and personal insurance)
- •Interbudgetary relations and their regulation
- •The special economic zones finances
- •20. Household finances.
- •21. The economic essence of insurance and its scope.
- •24. The essence of state credit.
- •25. The essence and the types of public debt.
- •26. Characteristics of international economy relations. Basic segments of international economy relations.
- •27. Accumulation and spending foreign exchange reserves.
- •28. Public financial management of the economy. (Государственное финансовое регулирование экономики)
- •29. Financial markets. (Финансовый рынок)
- •30. Finance and inflation. (Финансы и инфляция)
- •1. Essence of bank system, its structure and elements
- •2. The National Bank of rk: the purposes, tasks, functions and powers
- •3. The main functions of commercial banks. Principles of commercial bank
- •4. Essence and features of formation of banking resources
- •5. Ways of formation of the bank capital. Sources of bank’s capitalization.
- •6. Own capital of commercial bank, its elements and the basic functions.
- •7. Adequacy of the banking capital. Prudential standards of adequacy of the banking capital.
- •8. The Basel agreement and organization principles of prudential regulations of banking activity
- •Essence prudential regulation and supervision. System of prudential standards in rк
- •10. Essence of depositary operations. Classification of deposits. Savings and depositary certificates
- •12. The interbank market of credit resources. The mechanism of transaction on interbank market.
- •13. Quality of assets. Criteria of assets qualification on quality.
- •14. Essence of active operations of banks: their content and structure.
- •15. Objects of crediting and subjects of crediting. Principles of bank crediting.
- •Объекты кредитования и субъекты кредитных отношений. Принципы банковского кредитования.
- •Classification of bank's credit
- •17. Credit process. Stages of credit process
- •18. Quality of credits. Classification of a credit portfolio on quality
- •19. Forms of credit collateral
- •20. Essence of creditworthiness of the borrower. The basic methods of an assessment of credit status of the borrower.
- •21. Credit history of the borrower. Credit bureau: world experience, practice in Kazakhstan
- •22. Bank Liquidity Management. Liquidity Ratios.
- •23. Basic elements of bank marketing. Segmentation of the bank market.
- •24. Bank risks, their classification and the main methods of management.
- •25. Essence of bank regulation: its kinds and methods.
- •26. Essence, subjects and objects of banking supervision. A supervising cycle.
- •1) Taxes as an economic category. Tax options.
- •2. Fundamentals of Taxes. The classical principles of Taxation of Adam Smith.
- •Classification of Taxes on Various grounds.
- •A principles of taxation of a. Wagner
- •Types of tax rates and features of their construction. The methods of tax collection
- •6. Stages of development of Kazakhstan tax system.
- •7.Characteristics of current state of Kazakhstan tax system. Principles of Taxation on the Tax Code of the rk.
- •Tax policy: objectives (or purposes), main types.
- •Directions of tax policy rк at the current stage.
- •The tax mechanism and its structure.
- •12. The economic content of property taxes.
- •14. Individual taxation in the Republic of Kazakhstan (different)
- •15. Property tax of legal entities in the Republic of Kazakhstan (different)
- •16. Land tax in Kazakhstan: the mechanism of calculation and collection (different)
- •Unified land tax (mechanism of calculations and collection)
- •18.Tax on gambling and fixed tax: the basics of building a mechanism for calculation and collection.
- •19. The economic essence of the value added tax. Advantages and disadvantages of vat.
- •Vat: the basics of building a mechanism for calculation and collection.
- •21. The economic content and order of excise taxation in Kazakhstan.
- •Corporate income tax: classification, characteristic bases of construction and mechanism for collection.
- •Investment tax preferences.
- •24. Classification characteristics of individual income tax. System of personal income taxation.
- •25. Fundamentals of building and collection of personal income tax in kz
- •26. Social tax: mechanism of calculation and collection. Social contributions to Social Insurance Fund of rk.
- •27. Special tax regimes in Kazakhstan: patent, simplified declaration (basic and application criteria) (different)
- •28. Special tax regimes in Kazakhstan for peasant farmers, for legal entities - producers of agricultural products.
- •29. Taxes and special payments of subsurface users (types and application mechanism).
- •30. The forms of tax control
- •Installment Payments
- •Interest and Penalties
- •1. The essence of financial management / Financial management: the concept, goals, objectives and principles of the organization.
- •4. The concept of cash flow
- •5. The concept of time value of money
- •6. Financial asset’s profitability evaluation model
- •8. The financial leverage. The Effect of financial leverage.
- •9. The theory of capital structure by Modigliani-Miller
- •11. The Weighted Average Cost of Capital. Capm (different)
- •12) Methods of evaluation and investment project selection
- •13) Conditions of company’s profit maximization.
- •14) Role of the operational analysis in formation of financial results of the enterprise activity.
- •15) Current cost management of the company. Cvp analysis
- •16. Company’s economic and financial activities analysis.
- •17. Company’s investment policy.
- •In its investment policy, the company may choose different types of it:
- •18. The analysis and assestmnt of investment decision in conditions of the market.
- •19. Leasing as the form of long term financing (different)
- •21. The efficiency of working capital management in enterprise.
- •23. Company’s cash and marketable securities management (different)
- •Basic of Accounts receivable management in the enterprise
- •Inventory management of the company: objectives and methods.
- •Corporate re-structuring of the company.
- •Leverage-buy-out of the company (lbo).
- •30. The organizational structure of financial management in the company / objectives and main stages of mergers and acquisitions.
21. Types of long-term debt financing.
Виды долгосрочных заемных источников финансирования.
In contrast to short-term financing, which is mainly used for financing its continuing operations, long-term financing is used to finance assets and projects, like different business investments that have longer payback periods.
Types of a long-term financing instruments:
Term Loan
Treasury and Government Bonds
Corporate Bond, Convertible Bonds
Equity Financing
Capital Notes
What are the risks?
Considering the often large amounts of funds involved, long term debt financing is a relatively risky source of financing.
Breach of debt covenants may result in the company going into financial distress. For example, certain clauses state that if a certain covenant is breached, the entire loan amount has to be repaid in full immediately, or the mortgaged asset confiscated.
Secured creditors may take actions against the company if it is not able to meet payments.
If the interest charge is based on a floating rate, interest rates may move adversely against the company, causing huge unplanned and un-hedged increases in interest expenses and cash outflows.
Long term debt financing is usually more risky to the financier as it involves longer payback periods and thus higher credit risks. Hence, long-term debt financiers would usually require the borrowing company to pledge some form of asset as collateral. The amount of funds that the company is able to obtain through long term debt financing would depend greatly on the value of assets, which the company is able and willing to pledge.
Generally, long term debt financiers will also look at the credit worthiness of the borrowing company, in terms of its long term business prospects, cash flows, profitability, capital structure (debt-equity ratio) and other qualitative factors such as the transparency of operations, credibility and integrity of management etc. Long-term debt financiers such as financial institutions would usually require a set of up-to-date audited financial statements to perform their credit evaluation. Table below shows some of the quantitative factors that are commonly used by long-term debt financiers to evaluate borrowers.
Advantages:
Long term debt financing is usually less prone to short term shocks as it is secured by formally established contractual terms. Hence, they are relatively more stable than short-term debt.
Long term debt financing is directly linked to the growth of the company's operating capacity (purchase of capital assets such as machinery).
Long-term debt is normally well structured and defined. Thus fewer resources have to be channeled to monitor and maintain long-term debt financing accounts (compared to short term debt financing such as supplier credit which, changes overtime and need to be monitored on a regular basis).
Long-term debt financing options such as leases offer a certain degree of flexibility, compared to having to purchase the asset (E.g. machinery).
Disadvantages:
Long term debt is often costly to service (interest charges are higher).
Long term debt financiers usually demand a great amount of information from the company to perform its credit evaluation.
Start-ups usually find it more difficult to obtain long term debt financing, or if they do, at unfavorable terms, as they have almost no proven track record, low cash flow, and small asset base.
Long-term debt financing contracts normally contain a lot of restrictive clauses and covenants, including the scope of business operations that the company is allowed to engage in, capital and management structure limitations, etc.