Corporate Finance
Level: Introductory
Available: Today Online
Cost: USD $349
Pre-requisite: None

This newly revised and updated introductory course draws upon both finance theory and practical applications to help managers understand the key concepts that underlie the analysis and execution of financial decisions. Starting with the objectives of the firm and its Chief Financial Officer, the course will teach students how to apply time value of money principles, the capital budgeting framework, and analysis of financing options when making financial decisions.

LEARNING OBJECTIVES
After completing this course you should be able to:
  • Identify elements of corporate investment projects
  • Recognize elements and sources of corporate financing
  • Identify factors affecting the flow of corporate funds
  • Relate the Efficient Markets Hypothesis (EMH) to corporate financial decision making
  • Define the present value of money
  • Recognize the formulas involved in solving for different examples of present value
  • Recognize the formulas involved in solving for different examples of future value
  • Use a financial calculator to practice solving present and future value problems
  • Evaluate investments by calculating interest rates, annual bond yields and stock prices
  • Discuss the factors that affect interest rates and borrowing costs for financing projects
ADDITIONAL OBJECTIVES
  • Recognize the advantages of using Net Present Value versus Internal Rate of Return to calculate the value of a project
  • Recall when and how to use the profitability index to rank the value of a project
  • Determine the value of projects that have different life spans using the approaches called lowest common denominator and annual equivalency cash flow
  • Recognize the formulas for the after-tax weighted average cost of capital and capital asset pricing model and how they are used to determine the cost of capital
  • Identify the formulas for calculating cash flows resulting from investments and how they are used to determine the profitability of a project
  • Recognize factors influencing a financing decision and characteristics influencing the associated debt/equity mix
  • Recognize the significance of the debt-to-equity ratio to the financing decision and why firms may choose debt
  • Recognize the effects of leverage and its relationship to cost of equity (how financing decisions affect the value of a firm)
  • Calculate the cost of equity under various leverage ratios

CLOSE WINDOW

COURSE OUTLINE
Introduction
  1. Decisions of the corporate finance manager
  2. Maximizing the welfare of stockholders
  3. Managing the flow of funds
  4. Maintaining access to markets and managing risk
  5. The implications of efficient markets
Time Value of Money
  1. Simple present value concepts
  2. Present value formulas and examples
  3. Simple future value concepts
  4. Future value examples
Time Value Applications
  1. Prices and returns of bonds and equities
  2. Bond amortization
Capital Budgeting
  1. Merits of using net present value vs. internal rate of return
  2. Special capital budget problems
  3. Examples: capital rationing, projects of different lives
  4. After-tax weighted average cost of capital as discount rate
  5. Calculating cost of debt, equity and cash flows on investments
The Financing Decision
  1. Modigliani and Miller propositions
  2. Impact of bankruptcy and ownership structure on financing decisions
  3. Impact of leverage on firm valuation
Phone (610) 388-0969 / Fax (610) 388-8654 / info@SIRCOconsultants.com
© 2005 SIRCO Consultants, Inc.   West Chester, PA