Corporate Finance Fundamentals: From Theory To Practice

Unlock the essentials of corporate finance to make informed financial decisions and drive business value.

What you'll learn

Corporate Finance Fundamentals: Understand the core principles of corporate finance, including strategic financial management and capital allocation.

Strategic Financial Management: Explore the role of financial management in shaping business strategy, with real-world applications for manufacturing.

Capital Budgeting Techniques: Learn how to assess project viability using capital budgeting, including cash flow analysis, cost of capital.

Cost of Capital Analysis: Dive into methods for calculating the cost of capital and how it impacts project selection and organizational growth.

Shareholder Value Creation: Explore ways to maximize shareholder value through dividends, share buybacks, and equity management.

Project Analysis and Risk Assessment: Gain skills in evaluating project risks and returns, and using analytical techniques for informed decision-making.

Equity and Debt Management: Understand key concepts in managing net debt, equity share, and optimizing a firm’s capital structure.

Requirements

Basic Math and Analytical Skills: Comfort with basic mathematics, algebra, and data analysis will be beneficial, especially for understanding financial calculations.

Familiarity with Financial Terminology: A foundational understanding of key financial terms (e.g., revenue, expenses, assets, liabilities) will help in grasping more advanced concepts.

Description

Corporate finance is the backbone of every organization’s financial health, focusing on maximizing shareholder value and managing financial resources. In this comprehensive course, students will explore the core principles and practices of corporate finance, from strategic financial management to capital budgeting and shareholder returns. With real-life examples and practical insights, the course aims to build a strong foundation in managing and optimizing an organization’s financial structure.Section 1: IntroductionLecture 1: Introduction to Corporate FinanceThe journey begins with an introduction to corporate finance, setting the stage with the basic principles that guide financial decisions and operations within a corporation. This lecture lays the groundwork by defining corporate finance and discussing its relevance to the business world, including its impact on long-term organizational growth and stability.Section 2: Financial ManagementLecture 2: Strategic Financial ManagementDiving deeper into the role of financial management, students will explore strategies for effective financial planning, control, and decision-making. This session focuses on aligning financial goals with corporate strategy and understanding how financial management adds value to an organization.Lecture 3: Example on Manufacturing FirmThis lecture presents a case study of financial management in a manufacturing firm, offering a practical perspective on the complexities of managing finances in a production-based environment.Lecture 4: Calculating the Equity ShareUnderstanding equity shares is crucial for any finance professional. This session explores the process of calculating equity share, highlighting its importance in capital structure and shareholder value.Lecture 5: Meaning of Capital BudgetingHere, students learn about capital budgeting, the process by which firms evaluate investment projects and decide where to allocate resources. This lecture covers capital budgeting's critical role in the long-term success of a company.Section 3: Capital BudgetingLecture 6: Processing Capital BudgetingIn this lecture, students will learn how to approach capital budgeting from a practical perspective, understanding the steps involved in evaluating and selecting profitable investment projects.Lecture 7: Analyzing Cost of CapitalTo make informed investment decisions, understanding the cost of capital is essential. This lecture dives into the components that make up a company’s cost of capital, from debt to equity, and how to calculate it accurately.Lecture 8: Real Life DimensionsReal-world applications are key to mastering any finance concept. This lecture presents real-life scenarios, showing how companies approach capital budgeting in practice and what factors influence their decisions.Lecture 9: Aspects to Project AnalysisProject analysis is fundamental to capital budgeting. This session explores key considerations in project evaluation, including cash flows, risks, and market conditions, equipping students with a structured approach to project analysis.Lecture 10: Analyzing Mathematical ParametersThis lecture focuses on the mathematical parameters used in project analysis, such as net present value (NPV), internal rate of return (IRR), and payback period, which are essential tools in capital budgeting.Section 4: Shareholders ReturnLecture 11: Concept on Shareholders ReturnShareholders are central to corporate finance, and understanding shareholder returns is crucial. This lecture introduces the concept of shareholder returns and discusses how companies work to maximize them.Lecture 12: Determining the Buy Back ProcessBuybacks can significantly affect shareholder value. This session explains the buyback process, including when and why companies choose to repurchase shares.Lecture 13: Impetus of Dividends and Share BuybacksIn this lecture, students explore the factors that drive dividend payments and share buybacks, including their impact on stock prices and shareholder wealth.Lecture 14: Net Debt in Balance SheetThe balance sheet provides insights into a company’s financial health. This final lecture examines the net debt figure on a balance sheet, helping students understand its implications for company valuation and shareholder returns.ConclusionThrough this course, students gain an in-depth understanding of corporate finance essentials, from financial management principles to advanced capital budgeting techniques and maximizing shareholder returns. By mastering these concepts, students are prepared to analyze financial decisions critically and add value to any business environment.

Overview

Section 1: Introduction

Lecture 1 Introduction to Corporate Finance

Section 2: Financial Management

Lecture 2 Strategic Financial Management

Lecture 3 Example on Manufacturing Firm

Lecture 4 Calculating the Equity Share

Lecture 5 Meaning of Capital Budgeting

Section 3: Capital Budgeting

Lecture 6 Processing Capital Budgeting

Lecture 7 Analyzing Cost of Capital

Lecture 8 Real Life Dimensions

Lecture 9 Aspects to Project Analysis

Lecture 10 Analyzing Mathematical Parameters

Section 4: Shareholders Return

Lecture 11 Concept on Shareholders Return

Lecture 12 Determining the Buy Back Process

Lecture 13 Impetus of Dividends and Share Buybacks

Lecture 14 Net Debt in Balance Sheet

Aspiring Finance Professionals: Those aiming to pursue careers in finance, including roles like financial analysts, investment bankers, and corporate finance specialists.,Business Students and Graduates: Individuals studying business who want to deepen their knowledge of finance and understand how companies make investment and budgeting decisions.,Entrepreneurs and Business Owners: Those looking to enhance their financial literacy to make informed, strategic decisions for their businesses.,Managers and Executives: Professionals in management roles who need a stronger grasp of financial concepts to drive growth and value in their organizations.,Investors and Analysts: Individuals who analyze companies or markets and want insights into corporate finance principles to assess company value and performance.