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 valuationâwhich 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.
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
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
Publicly traded shares: What impacts the share price?