Want to learn how to make your corporation’s money make money? In this course you will learn how to compare various investment types, select the most viable financial investment opportunity, and maximize your corporation’s wealth. If you want to get a better understanding of how Wall Street works, this course is for you.
You will learn how financial managers use discounted cash flow and rate-of-return analyses to evaluate projects and financial instruments, the role of the cost of capital and the Capital Asset Pricing Model (CAPM) in capital investment analysis and selection, capital budgeting, stock and bond valuation, break-even analysis, capital market efficiency, real options, short-term financial management, and be introduced to international finance.
Week 1: Overview of Corporate Financial Management
An overview of corporate financial management, including the goal of the firm, agency costs, different ownership contracts, and a review of financial statements and financial ratios.
Week 2: Time Value of Money
Learn how financial managers use time value of money to compute various financial metrics, including net present value, internal rate of return, and the discounted payback period. Further you will learn various rules of investments to value alternative investment opportunities.
Week 3: Capital Asset Pricing Model (CAPM)
Learn how managers use the capital asset pricing model (CAPM) to assess the risk and return of various capital asset investment opportunities. You will also learn how financial managers use lessons from market history to help formulate current day decisions.
Week 4: Interest Rates and Bond Valuations
Learn how managers integrate interest rates and projected interest rate fluctuations when making financial decisions that may include additional corporate debt. Further, you will learn the determinants of bond yields, and clean vs. dirty prices.
Week 5: Stock Valuation
Learn how publically traded stock is valued at its initial public offering and on publically traded stock exchanges, such as the New York Stock Exchange.
Week 6: Short-term Finance and Planning
Learn how managers use short-term financing for operational needs and conduct financial planning to minimize the need to borrow for short-term liabilities.
Week 7: Cash Management and Credit and Inventory Management
Learn how financial managers decide whether to use cash and or borrowed funds to purchase inventory and fund other operational needs.
Week 8: Final assessment
Jayanta Sen and Jiya Jain