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Corporate Finance I: Measuring and Promoting Value Creation

Approx. 26 hours to complete

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Course Summary

This course is designed to teach learners about measuring success in corporate finance. It covers topics such as financial ratios, cash flow analysis, and risk assessment.

Key Learning Points

Learn how to measure success in corporate finance using financial ratios
Explore cash flow analysis and how it can be used to evaluate a company's financial health
Understand the importance of risk assessment in corporate finance

Learning Outcomes

Understand the importance of measuring success in corporate finance
Learn how to use financial ratios to evaluate a company's financial health
Master cash flow analysis and risk assessment techniques

Prerequisites or good to have knowledge before taking this course

Basic understanding of finance
Familiarity with financial statements

Course Difficulty Level

Intermediate

Course Format

Online
Self-paced

Similar Courses

Corporate Finance Essentials
Business and Financial Modeling

Related Education Paths

Notable People in This Field

Chairman and CEO of Berkshire Hathaway
Investor and Author of "The Intelligent Investor"

Related Books

Description

In this course you will learn how to use key finance principles to understand and measure business success and to identify and promote true value creation. You will learn how to use accounting information to form key financial ratios to measure a company’s financial health and to manage a company's short-term and long-term liquidity needs. You will also learn how to use valuation techniques to make sound business investment and acquisition decisions. Finally, you will learn how to incorporate risk and uncertainty into investment decisions and how to evaluate the performance of existing investments.

Upon successful completion of this course you will be able to: • Understand how companies make investment decisions that create value for shareholders • Use accounting statements to measure the financial health of a company • Forecast and manage a company’s short- and long-term liquidity needs • Measure the contribution of a new project or acquisition to shareholder value • Incorporate risk into investment decisions using the appropriate discount rates • Evaluate the performance of a company or divisions of a company This course was previously entitled Financial Evaluation and Strategy: Corporate Finance. The course received an average rating of 4.7 out of 5 based on 177 reviews over the period of September 2015 through August 2016. A detailed breakdown of ratings and reviews received for the prior version of the course, which is identical in content to the current course, is provided in the course orientation page. This course is part of the iMBA offered by the University of Illinois, a flexible, fully-accredited online MBA at an incredibly competitive price. For more information, please see the Resource page in this course and onlinemba.illinois.edu.

Outline

Course Overview
Welcome to Corporate Finance I: Measuring and Promoting Value Creation!
Learn on Your Terms
Syllabus
About this Course: Ratings and Reviews
About the Discussion Forums
Glossary
Getting to Know Your Classmates
Learn More About Flexible Learning Paths
Orientation Quiz

Module 1: The Objective of the Corporation and Analysis of Financial Ratios
Objectives and Overview
Why Maximizing the Stock Price is a Reasonable Goal For a Company
Conflicts Between Stock Price Maximization and Society
The Agency Problem and Corporate Governance
Balance Sheet Ratios: Introduction
Balance Sheet Ratios: Liquidity
Balance Sheet Ratios: Solvency
Income Statement Ratios: Profitability
Cash Flow Statement Ratios
Valuation Ratios
Module 1 Review
Like this course? Learn more with the iMBA! (optional)
Like this course? Learn more with the iMBA! (Optional)
Assignment 1 Overview
Assignment 1 Discussion
Module 1 Overview
Module 1 Readings
Module 1 Spreadsheets and Other Resources
Module 1 Practice Quiz 1
Module 1 Practice Quiz 2
Module 1 Practice Quiz 3
Module 1 Quiz

Module 2: Financial Planning
Objectives and Overview
Long-Term Financial Planning
Forecasting Income Statements
Forecasting Cash Flow Statements
Forecasting Balance Sheets
Raising Long-Term Financing: Discussion
Investments in Working Capital
Working Capital Ratios
Short-Term Financial Planning: Inventory
Seasonality and Receivables
Accounts Payable and Liquidity Risk
Module 2 Review
Assignment 2 Overview
Assignment 2 Discussion
Module 2 Overview
Module 2 Readings
Module 2 Spreadsheets and Other Resources
Module 2 Practice Quiz 1
Module 2 Practice Quiz 2
Module 2 Practice Quiz 3
Module 2 Quiz

Module 3: Making Investment Decisions
Objectives and Overview
NPV Example - Speeding Up the Collection of Receivables
The Concept of Net Present Value (NPV)
Calculating NPV in Excel
The Relationship Between NPV and Shareholder Value
The Internal Rate of Return (IRR)
Using the IRR to Evaluate Investments
Problems with the IRR
Additional Examples
Real Options - Valuing R&D
The Option to Wait - Gold Mine Example
The Option to Abandon a Project
Module 3 Review
Assignment 3 Overview
Assignment 3 Discussion
Module 3 Overview
Module 3 Readings
Module 3 Practice Quiz 1
Module 3 Practice Quiz 2
Module 3 Practice Quiz 3
Module 3 Practice Quiz 4
Module 3 Quiz

Module 4: Mergers and Acquisitions, Risk, and Performance Evaluation
Objectives and Overview
Good and Bad Reasons to Engage in M&A Transactions
Synergy Valuation and Deal Pricing
Means of Payment and Stock Market Reaction to M&A Deals
Leveraged Buyouts
Sensitivity Analysis
Using Discount Rates to Incorporate Risk Into the Valuation
Estimating the Required Return on Equity - The Market
Estimating the Required Return on Equity - The Company
Estimating the WACC
Performance Evaluation: Economic Value-Added (EVA)
Using EVA to Measure Performance of a Company's Division
Module 4 Review
Assignment 4 Overview
Assignment 4 Discussion
Module 4 Overview
Module 4 Readings
Module 4 Spreadsheets and Other Resources
Module 4 Practice Quiz 1
Module 4 Practice Quiz 2
Module 4 Practice Quiz 3
Module 4 Quiz

Course Conclusion
Conclusion
Gies Online Programs
Congratulations!
Get Your Course Certificate

Summary of User Reviews

Discover how to measure a company's success with Corporate Finance: Measure Success. This online course provides a comprehensive overview of the key financial metrics used in corporate finance. Users have praised the course's engaging instructors and clear explanations. However, some have noted that the course can be challenging for beginners.

Key Aspect Users Liked About This Course

engaging instructors

Pros from User Reviews

Clear explanations of key financial metrics
Engaging instructors
Practical examples and case studies
Flexible schedule and self-paced learning
Useful for professionals in various industries

Cons from User Reviews

Challenging for beginners
Some technical jargon that may be difficult to understand
Limited interaction with instructors
No certificate of completion for free version
Some quizzes and assignments can be time-consuming

Recommended for you

Corporate Finance I: Measuring and Promoting Value Creation

In this course you will learn how to use key finance principles to understand and measure business success and to identify and promote true value creation....

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