Corporate Finance I: Measuring and Promoting Value Creation
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Corporate Finance I: Measuring and Promoting Value Creation
This course is part of multiple programs.
Instructors: Heitor Almeida
54,518 already enrolled
Included with
1,188 reviews
1,188 reviews
What you'll learn
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
Skills you'll gain
- Return On Investment
- Financial Statement Analysis
- Financial Forecasting
- Finance
- Capital Budgeting
- Financial Modeling
- Cash Flow Forecasting
- Mergers & Acquisitions
- Financial Analysis
- Business Valuation
- Performance Analysis
- Balance Sheet
- Private Equity
- Corporate Finance
- Financial Statements
- Working Capital
- Risk Management
- Cash Flows
- Risk Analysis
- Performance Measurement
Details to know
18 assignments
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There are 4 modules in this course
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.
In Module 1, 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. We will then 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.
What's included
15 videos8 readings5 assignments1 discussion prompt1 plugin
15 videos•Total 112 minutes
- Welcome to Corporate Finance I: Financial Evaluation and Strategy•3 minutes
- Meet Professor Heitor Almeida•5 minutes
- Meet Professor Stefan Zeume•4 minutes
- Learn on Your Terms•1 minute
- Objectives and Overview•4 minutes
- Why Maximizing the Stock Price is a Reasonable Goal For a Company•10 minutes
- Conflicts Between Shareholder Value Maximization and Society•10 minutes
- The Agency Problem and Corporate Governance•8 minutes
- Balance Sheet Ratios: Introduction•5 minutes
- Balance Sheet Ratios: Liquidity•12 minutes
- Balance Sheet Ratios: Solvency•12 minutes
- Income Statement Ratios: Profitability•14 minutes
- Cash Flow Statement Ratios•14 minutes
- Valuation Ratios•9 minutes
- Module 1 Review•2 minutes
8 readings•Total 80 minutes
- Syllabus•10 minutes
- About the Discussion Forums•10 minutes
- Glossary•10 minutes
- Online Education at Gies College of Business•10 minutes
- Updating Your Profile•10 minutes
- Module 1 Overview•10 minutes
- Module 1 Readings•10 minutes
- Module 1 Spreadsheets and Other Resources•10 minutes
5 assignments•Total 150 minutes
- Orientation Quiz•30 minutes
- Module 1 Practice Quiz 1•30 minutes
- Module 1 Practice Quiz 2•30 minutes
- Module 1 Practice Quiz 3•30 minutes
- The Objective of the Corporation and Analysis of Financial Ratios Graded Quiz•30 minutes
1 discussion prompt•Total 10 minutes
- Getting to Know Your Classmates•10 minutes
1 plugin•Total 15 minutes
- Demographic Survey•15 minutes
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.
What's included
12 videos3 readings4 assignments
12 videos•Total 100 minutes
- Objectives and Overview•5 minutes
- Long-Term Financial Planning•6 minutes
- Forecasting Income Statements•9 minutes
- Forecasting Cash Flow Statements•9 minutes
- Forecasting Balance Sheets•8 minutes
- The Capital Structure Decision•8 minutes
- Investments in Working Capital•8 minutes
- Working Capital Ratios•9 minutes
- Short-Term Financial Planning: Inventory•14 minutes
- Short-Term Financial Planning - Receivables•11 minutes
- Short-Term Liabilities and Liquidity Risk•12 minutes
- Module 2 Review•2 minutes
3 readings•Total 30 minutes
- Module 2 Overview•10 minutes
- Module 2 Readings•10 minutes
- Module 2 Spreadsheets and Other Resources•10 minutes
4 assignments•Total 120 minutes
- Module 2 Practice Quiz 1•30 minutes
- Module 2 Practice Quiz 2•30 minutes
- Module 2 Practice Quiz 3•30 minutes
- Financial Planning Graded Quiz•30 minutes
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).
What's included
11 videos3 readings5 assignments
11 videos•Total 89 minutes
- Objectives and Overview•4 minutes
- NPV Example - Speeding Up the Collection of Receivables•10 minutes
- The Concept of Net Present Value (NPV)•10 minutes
- Calculating NPV in Excel•4 minutes
- The Relationship Between NPV and Shareholder Value•6 minutes
- The Internal Rate of Return (IRR)•9 minutes
- Using the IRR to Evaluate Investments•6 minutes
- Problems With the IRR•7 minutes
- Free Cash Flow Formulas•16 minutes
- Real Options - Valuing R&D•14 minutes
- Module 3 Review•2 minutes
3 readings•Total 50 minutes
- Module 3 Overview•10 minutes
- Module 3 Readings•10 minutes
- Spreadsheets and Other Resources•30 minutes
5 assignments•Total 160 minutes
- Module 3 Practice Quiz 1•30 minutes
- Module 3 Practice Quiz 2•30 minutes
- Module 3 Practice Quiz 3•30 minutes
- Module 3 Practice Quiz 4•10 minutes
- Making Investment Decisions Graded Quiz•60 minutes
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.
What's included
13 videos6 readings4 assignments1 peer review
13 videos•Total 125 minutes
- Objectives and Overview•6 minutes
- Good and Bad Reasons to Engage in M&A Transactions•13 minutes
- Synergy Valuation and Deal Pricing•13 minutes
- Means of Payment and Stock Market Reaction to M&A Deals•17 minutes
- Sensitivity Analysis•8 minutes
- Using Discount Rates to Incorporate Risk•11 minutes
- Estimating the Required Return on Equity•12 minutes
- Finding Beta•10 minutes
- Estimating the WACC•8 minutes
- Performance Evaluation: Economic Value-Added (EVA)•7 minutes
- Using EVA to Measure Performance•13 minutes
- Module 4 Review•3 minutes
- Conclusion•4 minutes
6 readings•Total 60 minutes
- Module 4 Overview•10 minutes
- Module 4 Readings•10 minutes
- Module 4 Spreadsheets and Other Resources•10 minutes
- Congratulations on completing the course!•10 minutes
- Get Your Course Certificate•10 minutes
- Honors Assignment Solution•10 minutes
4 assignments•Total 120 minutes
- Module 4 Practice Quiz 1•30 minutes
- Module 4 Practice Quiz 2•30 minutes
- Module 4 Practice Quiz 3•30 minutes
- Mergers and Acquisitions, Risk, and Performance Evaluation Graded Quiz•30 minutes
1 peer review•Total 90 minutes
- Honors Assignment•90 minutes
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This course is part of the following degree program(s) offered by University of Illinois Urbana-Champaign. If you are admitted and enroll, your completed coursework may count toward your degree learning and your progress can transfer with you.¹
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Reviewed on Sep 10, 2017
Great course with a LOT of beneficial knowledge. However, it's a lot of information crammed into 4 weeks. In order to learn the material thoroughly expect to spend a lot of time on it!
Reviewed on Feb 27, 2021
Great course with good coverage of Corporate Finance. Course was properly planned with Quizes and Assignment in between to ensure that we understand the concept explained in the course.
Reviewed on Nov 17, 2020
This course helped me to learn a lot about Corporate Finance, especially about mergers & acquisitions, LBO and IRR and many more. Mainly it was thanks to the approachable method of the teacher.
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