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Heitor Almeida and Stefan Zeume

In this course you will learn how companies decide on how much debt to take, and whether to raise capital from markets or from banks. You will also learn how to measure and manage credit risk and how to deal with financial distress. You will discuss the mechanics of dividends and share repurchases, and how to choose the best way to return cash to investors. You will also learn how to use derivatives and liquidity management to offset specific sources of financial risk, including currency risks. Finally, You will learn how companies finance merger and acquisition decisions, including leveraged buyouts, and how to incorporate large changes in leverage in standard valuation models.

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In this course you will learn how companies decide on how much debt to take, and whether to raise capital from markets or from banks. You will also learn how to measure and manage credit risk and how to deal with financial distress. You will discuss the mechanics of dividends and share repurchases, and how to choose the best way to return cash to investors. You will also learn how to use derivatives and liquidity management to offset specific sources of financial risk, including currency risks. Finally, You will learn how companies finance merger and acquisition decisions, including leveraged buyouts, and how to incorporate large changes in leverage in standard valuation models.

Upon successful completion of this course, you will be able to:

• Understand how companies make financing, payout and risk management decisions that create value

• Measure the effects of leverage on profitability, risk, and valuation

• Manage credit risk and financial distress using appropriate financial tools

• Understand the links between payout policies and company performance

• Use derivatives and liquidity management to offset financial risks

• Pick an appropriate financing package for an M&A or leveraged buyout deal

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.

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What's inside

Syllabus

Course Orientation
You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.
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Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
Teaches financial decision-making for value creation by companies
Helps learners measure and manage credit risk
Develops skills in assessing and mitigating financial risks
Taught by skilled instructors, Heitor Almeida and Stefan Zeume
Examines essential topics for financial managers
May need prerequisites in finance

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Reviews summary

Financing investments and managing risk

According to learners, this course provides a strong foundation in corporate finance topics such as capital structure, debt financing, payout policy, risk management, and M&A finance. Students found the lectures to be clear and engaging, often praising the instructor's ability to explain complex topics effectively. The course is considered highly relevant for professionals seeking to deepen their understanding of real-world corporate finance decisions. While some noted the assignments can be challenging, they are generally seen as valuable learning tools that help solidify understanding. A few reviews mentioned the course builds upon prior knowledge, suggesting it is best suited for those with some background in finance fundamentals.
Requires prior basic finance knowledge.
"This course builds significantly on Corporate Finance I concepts."
"It's helpful to have a solid understanding of finance fundamentals before taking this."
"Assumes you are comfortable with valuation basics already."
"Coming from a non-finance background, I found needing more prerequisite review."
Assignments require effort but aid learning.
"Assignments were challenging but truly helped solidify the concepts."
"The homework required significant effort but was crucial for understanding."
"Some assignments are tough, but they are good for practicing."
"I learned a lot by struggling through the problem sets."
Covers a wide range of key topics.
"The syllabus covers a wide range of important corporate finance subjects."
"Liked the coverage from debt to dividends to risk management."
"Provides a good overview of advanced financing and risk topics."
"Covers all the essential aspects promised in the description."
Content is applicable to real-world finance.
"Material is highly relevant to real-world corporate finance decisions."
"Provides practical tools and strategies that I can immediately apply."
"Useful course for understanding real business financing challenges."
"The topics on capital structure and risk management are very applicable."
Instructor explains complex concepts clearly.
"The professor explains the concepts so well and in such a clear and understandable way."
"Lectures are very clear, covering complex concepts deeply yet concisely."
"Excellent explanations on difficult topics like debt covenants and derivatives."
"I found the instructor's teaching style made complicated subjects easy to grasp."

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 II: Financing Investments and Managing Risk with these activities:
Review Basic Accounting Concepts
Ensure you have a solid foundation in accounting concepts before starting the course.
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Show steps
  • Review accounting textbooks or online resources.
  • Take practice quizzes or tests to assess your understanding.
  • Seek help from a tutor or online forum if needed.
Practice Excel Modeling
Enhance your proficiency in Excel modeling to effectively apply financial concepts.
Browse courses on Excel
Show steps
  • Complete online tutorials or exercises on Excel modeling.
  • Use Excel to solve practice problems or build financial models.
  • Seek feedback from others on your Excel skills.
Read Corporate Finance
Get an overview of fundamental concepts in corporate finance, such as capital structure, valuation, and risk management.
Show steps
  • Read the book thoroughly, taking notes as you go.
  • Make a list of key concepts and their definitions.
  • Answer the review questions at the end of each chapter.
  • Participate in online discussions about the book.
Six other activities
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Show all nine activities
Use the Coursera Finance Learning Path
Gain practical experience applying financial concepts through interactive tutorials and exercises.
Show steps
  • Sign up for the Coursera Finance Learning Path.
  • Complete the tutorials and exercises in the path.
  • Discuss your progress with other learners in the path's discussion forums.
Join a Finance Study Group
Collaborate with other learners to discuss course concepts, work on problems, and prepare for assessments.
Show steps
  • Find or start a finance study group.
  • Meet regularly to discuss course material.
  • Work together on practice problems and assignments.
  • Quiz each other to test your understanding.
Solve Financial Modeling Problems
Develop your ability to apply financial principles to real-world situations by solving problems.
Browse courses on Financial Modeling
Show steps
  • Find a collection of financial modeling problems online or in a textbook.
  • Solve the problems, using Excel or other financial modeling software.
  • Compare your solutions to those provided by the problem source.
  • Review your mistakes and learn from them.
Participate in a Finance Case Competition
Challenge yourself and apply your corporate finance skills in a competitive environment.
Browse courses on Financial Analysis
Show steps
  • Find a finance case competition to participate in.
  • Form a team and prepare for the competition.
  • Analyze the case and develop a solution.
  • Present your solution to a panel of judges.
Develop a Financial Plan for a Business
Apply your knowledge of corporate finance to a practical business scenario by creating a financial plan.
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Show steps
  • Choose a business to develop a financial plan for.
  • Research the business and its industry.
  • Develop a financial plan that includes financial statements, a capital structure, and a risk management strategy.
  • Present your financial plan to a group of investors or business professionals.
Contribute to an Open-Source Finance Project
Gain practical experience working on real-world finance projects and contribute to the open-source community.
Browse courses on Open Source
Show steps
  • Find an open-source finance project to contribute to.
  • Join the project's community and learn about the project's goals.
  • Identify an area where you can contribute.
  • Make a contribution to the project.

Career center

Learners who complete Corporate Finance II: Financing Investments and Managing Risk will develop knowledge and skills that may be useful to these careers:
Financial Analyst
As a Financial Analyst, you will evaluate and make recommendations on potential investments. To succeed in this role, it is important to have a strong understanding of how companies make financing, payout, and risk management decisions. The Corporate Finance II: Financing Investments and Managing Risk course will help you build a foundation in these areas. You will learn how to analyze the impact of debt and equity financing on corporate profits and risk, and how to use derivatives and liquidity management to offset financial risks.
Investment Banker
As an Investment Banker, you will provide advice to companies on mergers and acquisitions, capital raising, and other financial transactions. To be successful in this role, you need to have a deep understanding of corporate finance and the ability to analyze complex financial data. The Corporate Finance II: Financing Investments and Managing Risk course will help you develop the skills and knowledge you need to succeed as an Investment Banker. You will learn about the different types of financing available to companies, how to evaluate the risks and rewards of different investment opportunities, and how to structure and execute complex financial transactions.
Portfolio Manager
As a Portfolio Manager, you will manage investment portfolios for individuals and institutions. To be successful in this role, you need to have a strong understanding of financial markets and the ability to make sound investment decisions. The Corporate Finance II: Financing Investments and Managing Risk course will help you develop the skills and knowledge you need to succeed as a Portfolio Manager. You will learn about the different types of financial assets, how to analyze their risk and return characteristics, and how to construct and manage investment portfolios.
Credit Analyst
As a Credit Analyst, you will assess the creditworthiness of companies and make recommendations on whether to lend them money. To be successful in this role, you need to have a strong understanding of corporate finance and the ability to analyze complex financial data. The Corporate Finance II: Financing Investments and Managing Risk course will help you develop the skills and knowledge you need to succeed as a Credit Analyst. You will learn how to analyze the financial statements of companies, how to assess their credit risk, and how to make lending decisions.
Risk Manager
As a Risk Manager, you will identify and manage financial risks for companies. To be successful in this role, you need to have a strong understanding of financial markets and the ability to develop and implement risk management strategies. The Corporate Finance II: Financing Investments and Managing Risk course will help you develop the skills and knowledge you need to succeed as a Risk Manager. You will learn about the different types of financial risks, how to measure and manage them, and how to develop and implement risk management strategies.
Corporate Treasurer
As a Corporate Treasurer, you will manage the financial resources of a company. To be successful in this role, you need to have a strong understanding of corporate finance and the ability to make sound financial decisions. The Corporate Finance II: Financing Investments and Managing Risk course will help you develop the skills and knowledge you need to succeed as a Corporate Treasurer. You will learn about the different types of financing available to companies, how to manage cash flow, and how to make investment decisions.
Financial Consultant
As a Financial Consultant, you will provide financial advice to businesses and individuals. To be successful in this role, you need to have a strong understanding of corporate finance and the ability to communicate complex financial concepts to clients. The Corporate Finance II: Financing Investments and Managing Risk course will help you develop the skills and knowledge you need to succeed as a Financial Consultant. You will learn about the different types of financial services available, how to analyze financial data, and how to make financial recommendations.
Auditor
As an Auditor, you will examine the financial records of companies and express an opinion on the fairness of their financial statements. To be successful in this role, you need to have a strong understanding of accounting and auditing principles. The Corporate Finance II: Financing Investments and Managing Risk course may be helpful to you as an Auditor. You will learn about the different types of financial instruments and how they are accounted for. You will also learn about the risks associated with different types of financial transactions.
Tax Accountant
As a Tax Accountant, you will prepare and file tax returns for businesses and individuals. To be successful in this role, you need to have a strong understanding of tax laws and regulations. The Corporate Finance II: Financing Investments and Managing Risk course may be helpful to you as a Tax Accountant. You will learn about the different types of taxes that businesses and individuals are subject to, and how to calculate and file tax returns.
Financial Planner
As a Financial Planner, you will help individuals and families plan for their financial future. To be successful in this role, you need to have a strong understanding of financial planning principles and the ability to communicate complex financial concepts to clients. The Corporate Finance II: Financing Investments and Managing Risk course may be helpful to you as a Financial Planner. You will learn about the different types of financial products and services available, and how to create and implement financial plans.
Real Estate Agent
As a Real Estate Agent, you will help clients buy, sell, and rent real estate. To be successful in this role, you need to have a strong understanding of the real estate market and the ability to negotiate contracts. The Corporate Finance II: Financing Investments and Managing Risk course may be helpful to you as a Real Estate Agent. You will learn about the different types of real estate investments and how to finance them.
Insurance Agent
As an Insurance Agent, you will sell insurance policies to businesses and individuals. To be successful in this role, you need to have a strong understanding of insurance products and the ability to communicate complex insurance concepts to clients. The Corporate Finance II: Financing Investments and Managing Risk course may be helpful to you as an Insurance Agent. You will learn about the different types of insurance policies available and how to assess the risks associated with different types of businesses and individuals.
Loan Officer
As a Loan Officer, you will evaluate loan applications and make lending decisions. To be successful in this role, you need to have a strong understanding of credit analysis and the ability to assess the risks associated with different types of loans. The Corporate Finance II: Financing Investments and Managing Risk course may be helpful to you as a Loan Officer. You will learn about the different types of loans available and how to assess the creditworthiness of borrowers.
Stockbroker
As a Stockbroker, you will buy and sell stocks and other securities for clients. To be successful in this role, you need to have a strong understanding of the stock market and the ability to analyze investment opportunities. The Corporate Finance II: Financing Investments and Managing Risk course may be helpful to you as a Stockbroker. You will learn about the different types of stocks and other securities available and how to evaluate their risks and rewards.
Actuary
As an Actuary, you will use mathematical and statistical techniques to assess risks and develop insurance and investment products. To be successful in this role, you need to have a strong understanding of mathematics and statistics, as well as a deep knowledge of insurance and investment principles. The Corporate Finance II: Financing Investments and Managing Risk course may be helpful to you as an Actuary. You will learn about the different types of risks that businesses and individuals face, and how to develop insurance and investment products to mitigate these risks.

Featured in The Course Notes

This course is mentioned in our blog, The Course Notes. Read one article that features Corporate Finance II: Financing Investments and Managing Risk:

Reading list

We've selected 19 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 II: Financing Investments and Managing Risk.
This classic textbook provides a comprehensive overview of corporate finance, covering topics such as capital budgeting, capital structure, and dividend policy. It valuable resource for students and practitioners alike.
Provides a comprehensive overview of corporate finance theory and practice. It covers a wide range of topics, including capital budgeting, capital structure, and risk management. It valuable resource for students and practitioners alike. It is commonly used as a textbook at academic institutions.
Provides a rigorous and comprehensive theoretical treatment of corporate finance. It covers a wide range of topics, including capital structure, dividend policy, and mergers and acquisitions. It valuable resource for researchers and advanced students.
Provides a concise and accessible overview of corporate finance. It covers a wide range of topics, including capital budgeting, capital structure, and risk management. It valuable resource for students and practitioners alike.
Provides a comprehensive overview of financial risk management. It covers a wide range of topics, including risk measurement, risk management, and derivatives. It valuable resource for students and practitioners alike.
This textbook provides a comprehensive and rigorous treatment of derivatives markets and risk management. It is written in a clear and concise style, and it includes numerous examples and case studies.
Provides a comprehensive overview of corporate finance. It covers a wide range of topics, including capital budgeting, capital structure, and risk management. It valuable resource for students and practitioners alike. It is commonly used as a textbook at academic institutions.
Provides a comprehensive overview of corporate finance. It covers a wide range of topics, including capital budgeting, capital structure, and risk management. It valuable resource for researchers and practitioners alike.
Provides a comprehensive overview of corporate finance. It covers a wide range of topics, including capital budgeting, capital structure, and risk management. It valuable resource for students and practitioners alike. It is commonly used as a textbook at academic institutions.
This classic book provides a timeless guide to investing. It is written in a clear and engaging style, and it includes numerous examples and case studies.
Provides a comprehensive overview of corporate finance. It covers a wide range of topics, including capital budgeting, capital structure, and risk management. It valuable resource for students and practitioners alike. It is commonly used as a textbook at academic institutions.
This classic book provides a rigorous and comprehensive treatment of security analysis. It is written in a clear and concise style, and it includes numerous examples and case studies.
Provides a comprehensive guide to the investment banking industry. It covers a wide range of topics, including the different types of investment banking firms, the process of underwriting and distributing securities, and the risks and rewards of investment banking.
Provides a comprehensive overview of corporate finance. It covers a wide range of topics, including capital budgeting, capital structure, and risk management. It valuable resource for students and practitioners alike. It is commonly used as a textbook at academic institutions.
Provides a brief and accessible introduction to private equity. It is written in a clear and engaging style, and it includes numerous examples and case studies.

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