Course Highlights
  • Prepare for a corporate finance careers
  • Impress interviewers by showing a strong an understanding of finance fundamentals and advanced topics concepts
  • Acquire an understanding of corporate governance, capital budgeting, cost of capital, measures of leverage, and working capital management
Curriculum

1 Topic
What Does the Course Cover?

21 Topics
Working Capital Management (Definition)
Liquidity Management
Liquidity Measures
Asset Management Ratios
Payables Turnover Ratio
Calculate the Number of Days of Payables
Liquidity Analysis (Example)
Comprehensive liquidity analysis
Operating and Cash Conversion Cycles
Calculate the Operating Cycle of a Company
Calculate the Cash Conversion Cycle of a Company
Net Daily Cash Position
Yields on short-term securities
Investment Policy Statement
Accounts Receivable Management
Inventory Management
Accounts Payable Management
Short-term Bank Funding Sources
Short-term Non-bank Funding Sources
Working Capital Management
Practice questions (Working Capital Management)-answers

29 Topics
The Capital Budgeting Process
Capital Budgeting (Basic Principles)
Basic Principles of Capital Budgeting
Engaging with Multiple Projects at a Time
Engaging with Multiple Projects at a Time
Net Present Value (NPV)
Net Present Value: Example
Net Present Value: Example
Internal Rate of Return (IRR)
Internal Rate of Return (IRR)
Payback Period
Payback Period
Discounted Payback Period (DPBP)
Discounted Payback Period (DPBP)
Average Accounting Rate of Return (AAR)
Average Accounting Rate of Return (AAR)
Profitability Index (PI)
Profitability Index (PI)
NPV Profile
NPV Profile
NPV vs IRR
Compare the NPV and IRR Methods
Problems Associated with IRR
Problems Associated with IRR
Problems Associated with IRR
The Relation Between NPV and Share Price
Capital Budgeting (All Questions)
Practice Questions (Capital Budgeting)
Practice Questions (Answers with explanations)

31 Topics
The Weighted Average Cost of Capital (WACC)
The Weighted Average Cost of Capital (WACC)
Effect of Taxes on the Cost of Capital
Use of Target Capital Structure in Estimating WACC
Use of Target Capital Structure in Estimating WACC
Marginal Cost of Capital (MCC)
Marginal Cost of Capital (MCC)
The MCC's Role in Determining the NPV
The MCC's Role in Determining the NPV
Cost of Debt
Cost of Preferred Stock
Cost of Preferred Stock
Cost of Equity (Using CAPM)
Calculate the Cost of Equity
CAPM (Components)
Components of CAPM
Cost of Equity (Using the Dividend Discount Model)
Cost of Equity (Using the Bond Yield Plus Risk Premium Approach)
Calculate and Interpret Beta
Calculate and Interpret Beta
Calculate a Project's Beta
Calculate a Project's Beta
Estimate the Cost of Equity for Developing Countries
Estimate the Cost of Equity for Developing Countries
Marginal Cost of Capital Schedule
Marginal Cost of Capital Schedule
Flotation Costs
Flotation Costs
Cost of Capital
Practice Questions (Cost of Capital)
Practice Questions (Answers with explanations)

12 Topics
Case Study (Introduction)
Organizing Inputs Into Drivers Sheet
Sales Forecast Sheet
Preparing a Fixed Asset Rollforward Schedule
Calculate Cash Impact of Extra Working Capital
Debt Repayments and Interest Expenses
Project's P&L Sheet
Project’s Cash Flows
WACC
Calculate Beta in Excel
Discounting Project Cash Flows
Performance Evaluation and Sensitivity Analysis

11 Topics
Measures of Leverage
Business and Financial Risk
Calculate the Degree of Operating Leverage (DOL)
Calculate the Degree of Financial Leverage (DFL)
Calculate the Degree of Total Leverage (DTL)
The Effect of Financial Leverage on a Company's NI and ROE
Calculate the Breakeven Quantity of Sales
Calculate the Operating Breakeven Quantity of Sales
Measures of Leverage
Practice Questions (Measures of Leverage)
Practice Questions (Answers with explanations)

16 Topics
Corporate Governance: Description
Stakeholder Groups and Their Interests
Stakeholder Conflicts
Stakeholder Management
Governance Mechanisms
Board of Directors
Board of Directors Committees
Factors Influencing Corporate Governance
Corporate Governance: Risks and Benefits
Principles of Corporate Governance Analysis
Environmental Factors and Social Considerations in Investment Analysis
ESG Investing
ESG Investing vs Fiduciary Duties
Corporate Governance
Practice Questions (Corporate Governance and ESG: An Introduction)
Practice Questions (Answers with explanations)

7 Topics
Introduction
Setting up the Financial Calculator
Basic Calculations
Time Value of Money
Cash Flow Analysis
Statistics
Depreciation and Breakeven

1 Topic
Formula sheet

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The Corporate Finance Course

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