Corporate Finance

Business organizations are constantly engaged in financial decision-making related to financial planning, investments, capital purchases, etc. The right financial decisions play a critical role in maximizing an organization’s business value.

1. How do we value assets?
2. What is a good investment?
3. Does a project create value?

Corporate finance will address these issues to help managers make value-enhancing decisions.

This business and management course will introduce you to the role of corporate finance in an organization and the tools used to evaluate investment proposals.

The course will cover commonly used tools and techniques that help managers make decisions that create value for their organizations such as time value of money, opportunity cost, net present value and internal rate of return.

If you are interested in creating value for your organization, then this course is for you.

Week 1: Introduction to corporate finance and time value of money
Discussion of major financial decisions at a firm, issues related to separation of ownership and management, role of capital markets and time value of money.

Week 2: Valuation of basic securities
Introduction to valuation of bonds, stocks and the cost of capital.

Week 3: Capital budgeting
Introduction to capital budgeting, payback period, net present value and internal rate of return.

Week 4: Cash flows for capital budgeting
Estimation of cash flows of projects, cost of capital for a project and value addition by projects.

Week 5: Capital budgeting
Case study to illustrate the evaluation of a project using the capital budgeting tools discussed in earlier weeks.