Corporate Finance II: Financing Investments and Managing Risk

Start Date: 02/23/2020

Course Type: Common Course

Course Link: https://www.coursera.org/learn/corporate-finance-two

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About Course

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.

Course Syllabus

In Module 1, we will discuss the differences between debt and equity financing for corporations. We will then learn how to avoid usual mistakes that people make when analyzing the choice between debt and equity. We will work with financial statements to understand the impact of higher debt on corporate profits, and we will learn how debt and risk are fundamentally related. Finally, we will use our knowledge to understand how companies choose how much debt to have.

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Course Introduction

Corporate Finance II: Financing Investments and Managing Risk In this course you will learn how to design financial statements for value creation and to understand the concepts of equity, debt and risk. You will gain familiarity with the concepts of valuation and cost allocation and will learn about the different valuation techniques. You will learn about the concepts of asset value, risk and income before accounting for assets such as cash, securities and derivatives. You will also learn how to allocate capital between risk and ownership. Finally, you will learn the process of debt valuation and how to manage debt. You’ll also learn about asset-based valuation, cost allocation and portfolio optimization. Upon successful completion of this course you will be able to: • Describe the purpose of asset valuation and cost allocation methods; • Understand the concepts of risk and income before accounting for assets such as cash, securities and derivatives; • Understand the process of debt valuation and cost allocation in accounting for assets such as cash, securities and derivatives; • Understand the portfolio optimization method and the income statement used for asset-based valuation; • Understand the portfolio optimization method and the income statement used for asset-based valuation; • Understand the process of debt valuation and cost allocation in accounting for assets such as cash, securities and derivatives; • Understand the process of debt valuation and cost allocation in accounting for assets such as cash, securities and derivatives; • Understand the process of debt valuation and cost allocation

Course Tag

Risk Management Corporate Finance Mergers And Acquisitions (M&A) Debt

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