Overview

This course consists of two modules. Module 1 describes the financial and strategic motives for M&A deals and it also examines the potential downsides of such deals.

Module 2 explains why a company might choose to pay out a dividend rather than keep the cash as retained earnings on the balance sheet. It also describes other methods through which companies can offer value or benefits to shareholders, such as share buybacks and how these differ to stock dividends and stock splits.

Objective

On completion of this course, you will be able to:
- Determine whether a proposed M&A deal is EPS accretive or dilutive
- Identify the key strategic reasons and motivations for companies to make acquisitions
- Recognize the potential downsides of M&A deals
- Identify the reasons why companies have different dividend policies
- Recognize the purpose of a share repurchase (stock buyback) program as well as the benefits and impact of such a program
- Distinguish between stock dividends and stock splits

Content

Module 1: Mergers & Acquisitions (M&A) – Analysis
Topic 1: Financial Motives for Mergers & Acquisitions
Topic 2: Strategic Motives for Mergers & Acquisitions
Topic 3: Downsides to Mergers & Acquisitions

Module 2: Corporate Finance – Payout Policy
Topic 1: Dividend Policy
Topic 2: Share Repurchase (Stock Buyback)
Topic 3: Stock Dividends & Stock Splits