DSST Principles of Finance study plan

Build a one-page map of the three core statements (income statement, balance sheet, statement of cash flows) and label how each line links to the others

Compute a full ratio set (liquidity, activity, leverage, profitability) from a single practice company's statements and interpret each result in one sentence

Convert between annual percentage rate, periodic rate, and effective annual rate for at least six scenarios

Derive and apply the future value and present value formulas for a lump sum and an ordinary annuity without notes

Solve annuity due, perpetuity, and growing perpetuity problems and explain when each model applies

Set up and solve an uneven cash flow stream using discounting and compounding steps

Price a bond from its coupon, maturity, and yield, and classify it as premium, par, or discount

Compute current yield versus yield to maturity and explain why they diverge

Apply the dividend discount model, constant growth model, and a simple free-cash-flow approach to estimate equity value

Distinguish preferred stock valuation from common stock valuation and compute both

Calculate expected return, variance, and standard deviation for a two-asset portfolio

Explain diversification, systematic versus unsystematic risk, and the role of beta

Compute net present value, internal rate of return, payback, and discounted payback for the same project and reconcile their rankings

Identify when NPV and IRR conflict and justify the correct decision rule

Calculate the after-tax cost of debt, cost of preferred stock, and cost of equity using both CAPM and the dividend growth approach

Compute a weighted average cost of capital from a given capital structure and explain the effect of changing weights

Compute the cash conversion cycle from days inventory, days receivables, and days payables, and propose two levers to shorten it

Evaluate a credit policy change by comparing the cost of relaxed terms against incremental contribution margin

Build a simple cash budget for three months from collection and payment assumptions

Prepare a pro forma income statement and balance sheet using the percentage-of-sales method

Estimate project cash flows including depreciation tax shields, working capital changes, and terminal salvage value

Adjust a project's discount rate for risk and compare certainty-equivalent and risk-adjusted-rate approaches

Apply the security market line to determine required returns for assets with different betas

Distinguish standalone, corporate, and market risk in project evaluation

Complete two full-length timed practice exams under exam conditions and record per-domain accuracy

Re-derive every formula on the reference sheet from memory in under 15 minutes

Rank your three weakest domains by error count and rebuild those topics from first principles

Identify recurring trap patterns such as mixing nominal and effective rates or ignoring taxes in cost of capital

Close every item on the week-7 weakness list by reworking missed problems until each is solved correctly twice

Run one final timed practice exam and beat your week-7 score

Memorize the compact formula sheet covering TVM, valuation, WACC, and capital budgeting metrics

Rehearse a 10-minute mental checklist for statement analysis, TVM setup, and project ranking decisions