By Lilit Matevosyan, Financial Modeling Analyst, Instructor
Corporate Finance is a crucial part of any business so understanding it is important for both finance and non-finance professionals. This course is designed to cover the Corporate Finance theory and with practical examples. Hence, the students will be able to learn the materials and use them to solve real-life examples provided after each chapter. If you are new to finance or already have some knowledge willing to advance your skills this course is just perfect for you.
Here are some topics we will study throughout the course:
- First, we will start by discussing The Role Finance plays in a Company and will discuss questions like the goals of a company and its financial management, the principles and roles of finance, the legal forms of business organizations, etc.
- Then we will see how the money is transferred in the economy, what are the types of financial markets, we will study the historical interest rates, nominal rates, and the real rates, also for smarter investment decisions we’ll discuss the factors determining the interest rates.
- Moving forward, we will talk about financial statements. We will learn how to create a balance sheet, income statement, or cash flow statement by yourself all from scratch. Afterward, we will use these statements for the financial performance valuations and will conduct a financial ratio analysis. You will be able to calculate all the groups of financial ratios and comment on the findings.
- The next section of the course concentrates on the time value of money. You will learn how to calculate your loan schedule, and we’ll make you comfortable with complex calculations like perpetuities and annuities, effective and annual interest rates, etc.
- Afterward, we will talk about risk and return, using basic to advanced calculations. It will enable you to estimate the risk and assess the riskiness of any company.
- Then we will understand what are bonds, what are the types of it, will review the concept of discounting, and conduct bond valuations. We will also talk about stocks, their differences from bonds, its types and will conduct stock valuations using the dividend valuation model and CAPM. This will be the basis for calculating the cost of capital for a company. To put it simply, it will allow us to understand the cost of the funds that the companies use.
- Another very demanded section of the course is project valuations. It helps the companies understand which projects should be implemented and which ones should be dropped. We are going to come up with the cash flows of the project and then will calculate payback periods, NPV, IRR, MIRR, profitability index, etc.
- We will also conduct break-even analysis, study operating and financial leverages, capital structure theories, dividend policy, forecasting, planning, and budgeting, will study and organize working capital management, talk about international business finance, and much more.
There are no prerequisites. We will start from the basic and end with advance financial calculations. The only requirement is your passion to study.
Course overview - 16
The Financial Markets and Interest Rates
Understanding Financial Statements and Cash Flows
Evaluating a Firm’s Financial Performance
The Time Value of Money
The Meaning and Measurement of Risk and Return
The Valuation and Characteristics of Bonds
The Valuation and Characteristics of Stock
The Cost of Capital
Capital-Budgeting Techniques and Practice
Cash Flows and Other Topics in Capital Budgeting
Determining the Financing Mix
Dividend Policy and Internal Financing
International Business Finance