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LinkedIn Learning

Corporate Finance Foundations

via LinkedIn Learning

Overview

Learn the basics of corporate finance and its impact on decision-making and growth.

The financial choices a company makes can impact its performance and valuation—which makes corporate finance an important topic for executives, managers, and accountants alike. Learn the basics of corporate finance and its impact on decision-making and growth. In this course, professors Jim and Kay Stice lay the foundation for how corporate finance works and make the connections between business activity and finance. They discuss the role of risk in financial decision-making, the benefits of diversification, how short- and long-term financing can impact cash flow and business operations, and the various ways businesses use equity or debt to finance corporate capital. Plus, learn about the mysterious capital asset pricing model, CAPM.

Syllabus

Introduction
  • Finance for business decision-making
1. What Is Finance?
  • The board of directors discusses finance
  • Finance inside of companies
  • Finance outside of companies
2. Risk and Return
  • What is risk and why don't we like it?
  • Reducing risk through diversification
  • Beta: The concept
  • Beta: Examples
  • Risk-free rate
  • Equity risk premium
  • Capital asset pricing model (CAPM)
3. Obtaining Long-Term Financing
  • Introducing long-term financing
  • Does capital structure matter?
  • Factors influencing optimal capital structure
  • Cost of capital: All debt or all equity financing
  • Cost of capital: Split debt-equity financing
  • Weighted-average cost of capital
4. Understanding Securities Markets
  • The difference between a stock and a bond
  • Stock markets
  • Bond markets
  • Publicly traded shares: What impacts the share price?
  • Initial public offering (IPO): Microsoft
5. Capital Budgeting
  • Capital budgeting overview
  • The importance of the time value of money
  • Example: Buying light switches
Conclusion
  • Next steps

Taught by

Jim Stice and Kay Stice

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