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Javier Estrada

Corporate Finance Essentials will enable you to understand key financial issues related to companies, investors, and the interaction between them in the capital markets. By the end of this course you should be able to understand most of what you read in the financial press and use the essential financial vocabulary of companies and finance professionals.

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What's inside

Syllabus

Course Overview
Risk and Return
Welcome to Session 1 In this session we will discuss some basic but essential financial concepts such as mean return, volatility, and beta. We will also learn how to apply them in order to assess the performance of selected equity markets over the last decade. The learning objective is to understand the basic, essential, and widely used financial concepts.
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Correlation and Diversification
To understand diversification, an issue at the very heart of most investment decisions, and the role that correlation plays in determining the gains from diversification.
The CAPM and the Cost of Capital
In this session we will discuss how companies assess their cost of debt, their cost of equity, and ultimately their cost of capital. We will also discuss why this last concept is at the heart of many of the most important corporate decisions.
Estimating the Cost of Capital - An Application
In this session we will put to work all the concepts discussed in the previous session by estimating the cost of capital of a company. As usual, when putting theory into practice, a few complications arise and we will discuss how to deal with them.
Project Evaluation
In this session we will discuss how companies routinely decide whether or not to invest in projects. We will discuss the two tools most widely used for this purpose, NPV and IRR, and apply them to the evaluation of an investment opportunity.
Corporate Value Creation
In this session we will discuss EVA, a tool widely used to assess whether a company is creating or destroying value. We will also put this tool into practice by estimating the EVA of two companies.
Final Quiz

Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Explores core concepts in corporate financial management, such as risk, return, and capital budgeting
Teaches essential financial vocabulary of companies and finance professionals
Taught by Javier Estrada, an experienced professor and financial professional
Develops financial analysis skills through real-world examples and case studies
Provides a foundational understanding of corporate finance principles and practices
Requires a basic understanding of financial concepts and principles

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Reviews summary

Corporate finance essentials

Learners say this highly-rated course effectively and engagingly teaches the basics of corporate finance. Students will benefit from the engaging assignments and informative readings, and may find the difficult exams helpful for retention and comprehension as well. The course is especially well-regarded for its coverage of lectures, readings, exams, quizzes, homework assignments, instructors, deadlines, and certificates.
Instructor is a key strength of the course
"Excelente el aprendizaje del Profesor Javier Estrada."
"Clear explanations, good fundamentals, great professor"
"The lecturer explain very clearly and in a simple way."
"Great way to understand the basics in a financial world"
"One if not the best Coursera course I have taken so far"
"Thank u Professor! Excellent Course!!! I RECOMMENDED!!!!"
"Javier Estrada has an extraordinary domain on the topics"
"It was a great journey in the world of corporate finance"
"Impressive..! This is a must course for Finance student !"
"Excellent exposure to some important concepts of finance."
Assignments are a key strength of the course
"Engaging assignments"
"lectures"
"readings"
"exams"
"quizzes"
"homework assignments"
94% of students gave a positive review
"GREAT WAY OF PRESENTING COMPLEX TERMS IN SIMPLE WAY."
"Good course to learn corporate finance for beginner."
"Excellent exposure to some important concepts of finance."
"The Lecturer explain very clearly and in a simple way."
"Great way to understand the basics in a financial world"
6% of students gave a negative review

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Corporate Finance Essentials with these activities:
Review high school math
Review foundational math concepts to strengthen your understanding of financial concepts.
Browse courses on Algebra
Show steps
  • Identify areas where you need to brush up on your math skills.
  • Find online resources, such as Khan Academy or Coursera, to review the necessary concepts.
  • Practice solving math problems related to finance.
Read 'Corporate Finance' by Ross, Westerfield, and Jaffe
Gain a comprehensive understanding of corporate finance principles and practices.
Show steps
  • Read each chapter thoroughly.
  • Take notes on key concepts and formulas.
  • Complete the end-of-chapter exercises.
Organize and review course materials
Enhance comprehension by regularly reviewing and organizing course materials.
Show steps
  • After each lecture, review and summarize the key points.
  • Organize your notes, assignments, and other materials in a logical manner.
  • Periodically review your organized materials to reinforce your understanding.
Five other activities
Expand to see all activities and additional details
Show all eight activities
Follow tutorials on financial modeling in Excel
Develop practical skills in financial modeling using Excel.
Browse courses on Financial Modeling
Show steps
  • Identify online tutorials or courses on financial modeling in Excel.
  • Follow the tutorials step-by-step.
  • Practice building financial models using the techniques learned in the tutorials.
Join a study group to discuss course concepts
Enhance your learning by actively engaging with peers and exchanging perspectives.
Show steps
  • Form or join a study group with other students in the course.
  • Meet regularly to discuss the course material and work on assignments together.
  • Share ideas, insights, and questions to foster a deeper understanding of the topics.
Solve practice problems on financial ratios and analysis
Sharpen your analytical skills by solving practice problems on financial ratios and analysis.
Show steps
  • Find practice problems online or in textbooks.
  • Solve the problems and check your answers against the solutions.
  • Identify areas where you need additional practice.
Curate a collection of financial news articles and case studies
Stay updated on current trends and real-world applications of corporate finance.
Show steps
  • Identify reputable sources for financial news and case studies.
  • Regularly collect and organize articles and case studies that are relevant to the course topics.
  • Share your collection with your classmates or discuss in a study group.
Build a financial model for a company of your choice
Apply your knowledge of corporate finance to a real-world scenario.
Show steps
  • Choose a company that interests you.
  • Gather financial data on the company.
  • Build a financial model to analyze the company's financial performance.
  • Present your findings in a report.

Career center

Learners who complete Corporate Finance Essentials will develop knowledge and skills that may be useful to these careers:
Financial Analyst
Financial Analysts are responsible for assessing the performance of companies and making investment recommendations. This course can help you develop the skills you need to evaluate companies, understand their financial statements, and make sound investment decisions. The course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as a Financial Analyst.
Investment Banker
Investment Bankers help companies raise capital and advise them on mergers and acquisitions. This course can help you develop the skills you need to understand the financial markets, analyze companies, and make sound investment decisions. The course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as an Investment Banker.
Portfolio Manager
Portfolio Managers are responsible for managing investment portfolios for individuals and institutions. This course can help you develop the skills you need to understand the financial markets, analyze companies, and make sound investment decisions. The course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as a Portfolio Manager.
Corporate Finance Manager
Corporate Finance Managers are responsible for managing the financial resources of companies. This course can help you develop the skills you need to understand the financial markets, analyze companies, and make sound investment decisions. The course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as a Corporate Finance Manager.
Chief Financial Officer (CFO)
Chief Financial Officers (CFOs) are responsible for overseeing the financial operations of companies. This course can help you develop the skills you need to understand the financial markets, analyze companies, and make sound investment decisions. The course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as a CFO.
Venture Capitalist
Venture Capitalists are responsible for investing in early-stage companies. This course can help you develop the skills you need to understand the financial markets, analyze companies, and make sound investment decisions. The course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as a Venture Capitalist.
Equity Research Analyst
Equity Research Analysts are responsible for providing research and analysis on companies to investors. This course can help you develop the skills you need to understand the financial markets, analyze companies, and make sound investment decisions. The course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as an Equity Research Analyst.
Private Equity Associate
Private Equity Associates are responsible for evaluating and investing in private companies. This course can help you develop the skills you need to understand the financial markets, analyze companies, and make sound investment decisions. The course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as a Private Equity Associate.
Hedge Fund Manager
Hedge Fund Managers are responsible for managing hedge funds, which are investment funds that use advanced investment strategies. This course can help you develop the skills you need to understand the financial markets, analyze companies, and make sound investment decisions. The course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as a Hedge Fund Manager.
Financial Consultant
Financial Consultants provide financial advice to individuals and businesses on a wide range of topics. This course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as a Financial Consultant.
Risk Manager
Risk Managers are responsible for identifying and managing the risks associated with companies. This course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as a Risk Manager.
Financial Planner
Financial Planners help individuals and businesses plan for their financial future. This course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as a Financial Planner.
Credit Analyst
Credit Analysts are responsible for assessing the creditworthiness of companies and individuals. This course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as a Credit Analyst.
Accounting Manager
Accounting Managers are responsible for overseeing the accounting operations of companies. This course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as an Accounting Manager.
Investment Manager
Investment Managers are responsible for managing the investment portfolios of individuals and institutions. This course covers a wide range of topics, including risk and return, correlation and diversification, and the cost of capital. This knowledge will be essential for success in a role as an Investment Manager.

Reading list

We've selected 42 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Corporate Finance Essentials.
Is the official curriculum for the CFA program. It comprehensive and authoritative resource that covers all of the topics that are tested on the CFA exam.
Classic guide to security analysis. It great resource for students who are interested in learning about the fundamentals of security analysis.
Classic textbook on corporate finance. It provides a clear and concise overview of the subject, making it a good choice for students who are new to the field.
Is an essential resource for anyone who wants to learn about corporate finance. It covers a wide range of topics, from the basics of financial management to the latest developments in the field. The book is well-written and easy to understand, making it a great choice for students and professionals alike.
Classic work on security analysis. It provides a comprehensive overview of the subject, making it a valuable resource for investors.
Classic textbook on corporate finance. It comprehensive and authoritative resource that is used by students and professionals alike.
Must-read for any investor. It provides timeless advice on how to make sound investment decisions.
Comprehensive and authoritative guide to options, futures, and derivatives. It great resource for students who are interested in learning about the principles of options, futures, and derivatives.
More concise and accessible introduction to corporate finance than Ross, Westerfield, and Jaffe's or Brigham and Ehrhardt's books. It great choice for students who are new to the field or who are looking for a quick overview of the subject.
Collection of eight case studies of successful CEOs who turned around their companies. One of the problems with finance is that it can be hard to see how the theory plays out in the real world. This book solves this problem by providing detailed case studies.
Classic guide to value investing. It provides timeless principles for investing in stocks and bonds, and it must-read for any serious investor.
Practical guide to corporate finance. It provides step-by-step instructions on how to perform financial analysis, value companies, and make investment decisions.
Widely-used textbook for corporate finance courses at academic institutions. It provides comprehensive coverage of the key concepts and theories in corporate finance, including risk and return, capital budgeting, and cost of capital.
Great resource for students who are new to corporate finance or who are looking for a quick and easy-to-understand overview of the subject.
Is another popular textbook for corporate finance courses. It provides a clear and concise overview of the key concepts in corporate finance, making it a good choice for students who are new to the subject.
Comprehensive reference on fixed income securities. It covers a wide range of topics, including bond pricing, credit analysis, and portfolio management.
Comprehensive reference on financial risk management. It covers a wide range of topics, including risk measurement, risk management techniques, and case studies.
Practical guide to venture capital. It provides step-by-step instructions on how to raise venture capital, invest in venture capital, and exit from venture capital investments.
Comprehensive guide to private equity. It covers a wide range of topics, including private equity funds, private equity investments, and private equity exits.
Comprehensive reference on options, futures, and derivatives. It covers a wide range of topics, including pricing, hedging, and trading.
Provides a core foundation in corporate finance, focusing on the key concepts and theories.

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