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Heitor Almeida
and
Stefan Zeume
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.
Read more
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.
Read more
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.
Register for this course and see more details by visiting:
OpenCourser.com/course/jln3ra/corporate
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What's inside
Syllabus
Course Overview
In this module, you will become familiar with the course, your instructor, your classmates, and our learning environment. The orientation also helps you obtain the technical skills required for the course.
Read more
Syllabus
Course Overview
In this module, you will become familiar with the course, your instructor, your classmates, and our learning environment. The orientation also helps you obtain the technical skills required for the course.
Read more
Module 1: The Objective and Language of Corporate Finance
In Module 1, we will discuss the objectives of the corporation. We will introduce the concept of shareholder value and discuss the pros and cons of maximizing stock prices. We will then learn how to calculate financial ratios that measure concepts such as liquidity, leverage, and profitability. We will work with accounting statements and financial data from real world companies and learn how to use this data to measure the financial health of companies and make comparisons with competitors.
Module 2: Financial Planning
In Module 2, we will learn models that allow us to forecast and manage a company's short-term investments such as capital expenditures. We will forecast the future financial statements of a real world company and learn how to figure out how much external financing the company will need. We will then use real world examples to learn how short-term investments in working capital determine a company's need for short-term financing.
Module 3: Making Investment Decisions
In Module 3, we will learn tools that allow us to measure the contribution of a new investment to shareholder value. We will learn how to calculate the net present value (NPV) of an investment and how to use the NPV to make a decision on whether to make the investment or not. We will also learn to calculate the rate of return (IRR) on an investment project and how to properly use the IRR in investment decisions. Finally, we will learn how to incorporate real options into investment analysis to be able to make decisions about investments such as R&D (research and development).
Module 4: Mergers and Acquisitions, Risk, and Performance Evaluation
In Module 4, we will apply our investment valuation tools to understand when a merger between two companies creates shareholder value. We will learn to distinguish between good and bad reasons for companies to engage in mergers and acquisitions (M&A), and we will learn how to price an M&A deal. We will also learn the specific characteristics of leveraged buyouts (LBOs) and how they can create value for shareholders. We will then learn how to incorporate risk into investment valuation by changing discount rates. We will calculate the weighted-average cost of capital (WACC) for a real world company and learn how to use WACC to value investments and to measure the performance of the company or a division of the company.
Course Conclusion
Good to know
Good to know
Know what's good ,
what to watch for , and
possible dealbreakers
Develops skills and knowledge that are core for corporate finance roles such as financial analysts, financial managers, and investment bankers
Taught by Heitor Almeida and Stefan Zeume, who are known for their work in corporate finance
Builds a solid foundation in corporate finance principles for beginners
Examines key financial ratios to measure the financial performance of a company
Teaches the use of valuation techniques to make investment and acquisition decisions
Covers topics such as financial planning, investment decisions, and mergers and acquisitions
Save this course
Save Corporate Finance I: Measuring and Promoting Value Creation to your list so you can find it easily later:
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Reviews summary
Practical course on corporate finance
Learners say this practical course on corporate finance features engaging assignments that are based on real-world scenarios.
Engaging assignments apply theories to real-world scenarios.
"The strength of this course in corporate finance is the application of acquired knowledge to real cases of multinationals with recent data."
Consider earlier coverage of financial valuation.
"I think Course 5 & 6 should be placed before Course 3 & 4 because financial valuation come before investment."
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 I: Measuring and Promoting Value Creation with these
activities:
Review 'Corporate Finance' by Ross, Westerfield, & Jordan
Show steps
Review this comprehensive textbook to build a foundational understanding of corporate finance concepts, which will support understanding throughout the course.
View
Fundamentals of Corporate Finance
on Amazon
Show steps
-
Identify key concepts in each chapter.
-
Summarize the main points of each section.
-
Review practice problems and solutions.
Analyze historical financial ratios
Show steps
Practice calculating and interpreting financial ratios to understand how companies have performed in the past and identify potential areas for improvement.
Browse courses on
Financial Ratios
Show steps
-
Gather financial data for several companies.
-
Calculate key financial ratios.
-
Compare ratios to industry benchmarks.
-
Identify trends and draw conclusions.
Discuss case studies with classmates
Show steps
Engage in discussions with peers to explore different perspectives and strengthen your understanding of complex financial concepts.
Show steps
-
Form a study group with classmates.
-
Select a case study related to the course material.
-
Analyze the case study individually.
-
Meet with the study group to discuss your analyses and insights.
Four other activities
Expand to see all activities and additional details
Show all seven activities
Participate in a mock investment competition
Show steps
Apply your knowledge of investment principles in a simulated environment, making investment decisions and evaluating performance to enhance your practical skills.
Browse courses on
Investment Analysis
Show steps
-
Join or form a team for the competition.
-
Research and analyze potential investments.
-
Develop an investment strategy and portfolio.
-
Monitor and adjust your portfolio over the course of the competition.
Walk through financial modeling examples
Show steps
Follow guided tutorials to develop practical skills in financial modeling, enabling you to analyze and make informed investment decisions.
Browse courses on
Financial Modeling
Show steps
-
Find online tutorials or courses on financial modeling.
-
Choose a financial model that aligns with your interests.
-
Step through the model, understanding each input and calculation.
-
Analyze the results and draw conclusions.
Develop a financial plan for a small business
Show steps
Create a comprehensive financial plan for a small business, applying the concepts and techniques learned in the course to solve real-world financial challenges.
Browse courses on
Financial Planning
Show steps
-
Identify a small business to work with.
-
Gather financial data and conduct industry research.
-
Develop financial projections and scenarios.
-
Create a financial plan that outlines strategies and recommendations.
Write a blog post on a current event in corporate finance
Show steps
Research and write a blog post on a relevant topic in corporate finance, demonstrating your understanding and ability to communicate complex concepts.
Show steps
-
Identify a recent event or news story related to corporate finance.
-
Research the event and gather relevant information.
-
Develop a thesis statement and outline for your blog post.
-
Write the blog post clearly and concisely, supporting your arguments with evidence.
Review 'Corporate Finance' by Ross, Westerfield, & Jordan
Show steps
Review this comprehensive textbook to build a foundational understanding of corporate finance concepts, which will support understanding throughout the course.
View
Fundamentals of Corporate Finance
on Amazon
Show steps
Show steps
Show steps
- Identify key concepts in each chapter.
- Summarize the main points of each section.
- Review practice problems and solutions.
Analyze historical financial ratios
Show steps
Practice calculating and interpreting financial ratios to understand how companies have performed in the past and identify potential areas for improvement.
Browse courses on
Financial Ratios
Show steps
Show steps
Show steps
- Gather financial data for several companies.
- Calculate key financial ratios.
- Compare ratios to industry benchmarks.
- Identify trends and draw conclusions.
Discuss case studies with classmates
Show steps
Engage in discussions with peers to explore different perspectives and strengthen your understanding of complex financial concepts.
Show steps
Show steps
Show steps
- Form a study group with classmates.
- Select a case study related to the course material.
- Analyze the case study individually.
- Meet with the study group to discuss your analyses and insights.
Four other activities
Expand to see all activities and additional details
Show all seven activities
Participate in a mock investment competition
Show steps
Apply your knowledge of investment principles in a simulated environment, making investment decisions and evaluating performance to enhance your practical skills.
Browse courses on
Investment Analysis
Show steps
Show steps
Show steps
- Join or form a team for the competition.
- Research and analyze potential investments.
- Develop an investment strategy and portfolio.
- Monitor and adjust your portfolio over the course of the competition.
Walk through financial modeling examples
Show steps
Follow guided tutorials to develop practical skills in financial modeling, enabling you to analyze and make informed investment decisions.
Browse courses on
Financial Modeling
Show steps
Show steps
Show steps
- Find online tutorials or courses on financial modeling.
- Choose a financial model that aligns with your interests.
- Step through the model, understanding each input and calculation.
- Analyze the results and draw conclusions.
Develop a financial plan for a small business
Show steps
Create a comprehensive financial plan for a small business, applying the concepts and techniques learned in the course to solve real-world financial challenges.
Browse courses on
Financial Planning
Show steps
Show steps
Show steps
- Identify a small business to work with.
- Gather financial data and conduct industry research.
- Develop financial projections and scenarios.
- Create a financial plan that outlines strategies and recommendations.
Write a blog post on a current event in corporate finance
Show steps
Research and write a blog post on a relevant topic in corporate finance, demonstrating your understanding and ability to communicate complex concepts.
Show steps
Show steps
Show steps
- Identify a recent event or news story related to corporate finance.
- Research the event and gather relevant information.
- Develop a thesis statement and outline for your blog post.
- Write the blog post clearly and concisely, supporting your arguments with evidence.
Career center
Learners who complete Corporate Finance I: Measuring and Promoting Value Creation will develop knowledge and skills
that may be useful to these careers:
Financial Analyst
Financial Analyst
Financial Analysts use data analysis to make informed decisions on behalf of companies, government agencies, hedge funds, and individuals. They use complex mathematical modeling to make stock recommendations or advise on investment decisions, which makes this course's emphasis on investment valuation tools and techniques highly relevant. This course may also provide a foundation for the Chartered Financial Analyst (CFA) certification, which is highly respected in this industry.
Investment Banker
Investment Banker
Investment Bankers are financial advisors who provide financial services to corporations related to capital-raising, mergers, and acquisitions. They also help companies raise money through the issuance of equity and debt instruments, and they lead financial transactions and deals. Understanding investment valuation and the relevant tools is a core part of the role, which is why this course may be especially useful.
Private Equity Investor
Private Equity Investor
Private Equity Investors manage funds that invest in private companies with the goal of improving the companies and increasing profitability. This course's focus on investment valuation and making investment decisions will help you understand how to find value in private companies, and it may also help prepare you for the Chartered Alternative Investment Analyst (CAIA) designation, which is highly sought-after in this field.
Venture Capitalist
Venture Capitalist
Venture Capitalists provide funding to early-stage, high-growth companies with the goal of achieving high returns on investment. This course may be useful for building a foundation in investment valuation and analysis, which is essential for identifying worthwhile companies and negotiating deals.
Portfolio Manager
Portfolio Manager
Portfolio Managers make investment decisions for individuals and organizations, managing investment portfolios and making recommendations based on financial analysis and market research. This course can help you build a strong foundation in investment valuation and risk management, which are essential skills for Portfolio Managers at all levels.
Corporate Finance Manager
Corporate Finance Manager
Corporate Finance Managers oversee the financial planning and management of a company, including budgeting, capital allocation, and mergers and acquisitions. This course may be helpful for understanding the financial concepts and valuation techniques that are necessary for success in this role.
Financial Risk Manager
Financial Risk Manager
Financial Risk Managers assess and manage financial risks for companies, identifying potential risks and developing strategies to mitigate them. This course will provide foundational knowledge in risk management and the Weighted Average Cost of Capital (WACC), which can be extremely valuable to a Financial Risk Manager.
Financial Advisor
Financial Advisor
Financial Advisors provide financial advice and guidance to individuals and families, helping them plan for retirement, invest their money, and manage their finances. This course may be especially helpful for understanding how to measure a company's financial health and make investment recommendations.
Accountant
Accountant
Accountants are responsible for recording, summarizing, and reporting financial transactions of a business. They prepare financial statements and ensure that financial records are accurate and comply with regulations. This course may be beneficial in developing a deeper understanding of financial ratios and accounting principles.
Financial Planner
Financial Planner
Financial Planners assist individuals and families in creating and implementing financial plans that meet their specific goals. This course may be useful for acquiring knowledge of financial planning concepts, including investment valuation and risk management.
Business Analyst
Business Analyst
Business Analysts analyze business processes and identify opportunities for improvement. They may also be involved in developing and implementing new systems and procedures. While not directly related to corporate finance, this course may be useful for building a solid foundation in financial analysis and data-driven decision-making.
Business Consultant
Business Consultant
Business Consultants provide advice and guidance to businesses on a variety of topics, including finance, strategy, and operations. While not directly related to corporate finance, this course may be useful for developing a broader understanding of business principles and financial analysis.
Investment Analyst
Investment Analyst
Investment Analysts conduct research and analysis on investments and make recommendations to clients. This course may be useful for building a foundation in investment valuation and analysis, which is essential for making well-informed investment decisions.
Financial Controller
Financial Controller
Financial Controllers are responsible for managing the financial operations of a company, including budgeting, cash flow, and financial reporting. While not directly related to corporate finance, this course may provide a foundation in financial analysis and reporting.
Credit Analyst
Credit Analyst
Credit Analysts assess the creditworthiness of individuals and businesses. They review financial statements and other information to determine the risk of default and make recommendations on whether to extend credit. This course may be useful for developing a deeper understanding of financial analysis and credit risk assessment.
For more career information including salaries, visit:
OpenCourser.com/course/jln3ra/corporate
Reading list
We've selected 30 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 I: Measuring and Promoting Value Creation.
Classic guide to investing. It provides a clear and concise overview of the principles of value investing and valuable resource for students, practitioners, and researchers.
Save
This textbook comprehensive resource that provides a solid foundation in corporate finance. It covers a wide range of topics, including financial statement analysis, capital budgeting, and mergers and acquisitions. The book is well-written and provides numerous examples and case studies to illustrate the concepts discussed.
Save
Classic guide to security analysis. It provides a detailed overview of the principles and techniques of security analysis and valuable resource for students, practitioners, and researchers.
This textbook is another well-regarded resource for corporate finance. It is known for its clear and concise explanations of complex concepts. The book also provides a number of helpful features, such as end-of-chapter problems and case studies.
Comprehensive guide to equity investments.
Classic textbook that provides a clear and concise introduction to corporate finance. It is widely used in undergraduate and graduate courses and valuable reference for practitioners.
Comprehensive guide to fixed income securities. It provides a detailed overview of the different types of fixed income securities and valuable resource for students, practitioners, and researchers.
Comprehensive and practical guide to financial management. It provides a strong foundation for understanding the principles and practices of financial management and valuable reference for students, practitioners, and researchers.
Comprehensive guide to mergers and acquisitions. It provides a detailed overview of the different topics covered in mergers and acquisitions and valuable resource for students, practitioners, and researchers.
Save
Provides a unique perspective on corporate finance by focusing on value creation. It valuable resource for students, practitioners, and researchers who want to understand how to create value for shareholders.
Provides a comprehensive overview of the investment banking industry. It covers the different types of investment banking services, the different types of investment bankers, and the different types of investment banking transactions.
Collection of Warren Buffett's annual letters to Berkshire Hathaway shareholders. It provides a unique opportunity to learn from one of the greatest investors of all time. Buffett's letters are full of wisdom and insights into investing, business, and life.
Provides an introduction to private equity. It covers the history, structure, and operation of private equity funds and valuable resource for students, practitioners, and researchers.
Provides a comprehensive overview of financial modeling. It covers the different types of financial models, the different types of financial modeling software, and the different types of financial modeling techniques.
Provides a comprehensive overview of value investing. It covers the different types of value investing strategies, the different types of value investors, and the different types of value investing techniques.
Thought-provoking exploration of the nature of risk and uncertainty. It challenges conventional wisdom and provides a new way of thinking about financial markets. While it is not a traditional corporate finance book, it valuable resource for anyone who wants to understand the risks involved in investing.
Save
Fascinating exploration of how our minds work. It provides insights into how we make decisions and how we can improve our decision-making skills. While it is not specifically about corporate finance, it valuable resource for anyone who wants to make better decisions in their personal and professional lives.
Is considered to be the bible of security analysis. It covers the different types of security analysis techniques, the different types of security analysts, and the different types of security analysis reports.
Save
Comprehensive guide to Ray Dalio's investment philosophy. It provides a detailed overview of his approach to investing and how he has achieved such remarkable success. While it long and complex book, it valuable resource for anyone who wants to learn more about investing.
Provides a comprehensive overview of mergers and acquisitions. It covers the different types of mergers and acquisitions, the different types of mergers and acquisitions transactions, and the different types of mergers and acquisitions techniques.
Provides a comprehensive overview of private equity. It covers the different types of private equity funds, the different types of private equity investments, and the different types of private equity exits.
Save
Personal finance classic that has helped millions of people improve their financial literacy. It provides simple and effective strategies for building wealth and achieving financial independence.
Study of the habits and characteristics of millionaires. It provides insights into how millionaires build and manage their wealth. While it is not specifically about corporate finance, it valuable resource for anyone who wants to achieve financial success.
Save
Provides a comprehensive overview of venture capital. It covers the different types of venture capital funds, the different types of venture capital investments, and the different types of venture capital exits.
Provides a comprehensive overview of financial risk management. It covers the different types of financial risks, the different types of financial risk management techniques, and the different types of financial risk management tools.
Popular guide to getting out of debt and building wealth. It provides a step-by-step plan for achieving financial freedom.
Is helpful to provide more depth and breadth to the topics covered in this course. Serves as a necessary reference and is especially useful for advanced readers who want to explore the theoretical underpinnings of corporate finance.
Is helpful to provide more theoretical depth and background to the course's topic of measuring and promoting value creation.
Provides a comprehensive overview of both investment analysis and portfolio management, which are helpful for a deeper dive into these tangential but related areas.
This book, written by an economist, provides a useful perspective. It is more focused on the macro-level view of financial markets which complements the course's focus on the micro-level view of individual companies or projects.
For more information about how these books relate to this course, visit:
OpenCourser.com/course/jln3ra/corporate
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Effort
2-4 hours/week
Level
Introductory
Via
Coursera
Institution
University of Illinois at Urbana-Champaign
Instructors
Heitor Almeida
Stefan Zeume
Language
English
Transcripts
Español
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中文
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This course belongs to a
collection
called
Financial Management. It's comprised of seven courses:
- Financial Accounting: Advanced Topics
- Corporate Finance II: Financing Investments and Managing Risk
- Financial Accounting: Foundations
- Corporate Finance I: Measuring and Promoting Value Creation (viewing)
- Investments II: Lessons and Applications for Investors
- Financial Management Capstone
- Investments I: Fundamentals of Performance Evaluation
Good to know
Develops skills and knowledge that are core for corporate finance roles such as financial analysts, financial managers, and investment bankers
Taught by Heitor Almeida and Stefan Zeume, who are known for their work in corporate finance
Builds a solid foundation in corporate finance principles for beginners
Examines key financial ratios to measure the financial performance of a company
Teaches the use of valuation techniques to make investment and acquisition decisions
Covers topics such as financial planning, investment decisions, and mergers and acquisitions
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