Corporate Finance - Part 2 (2019)
This course consists of two modules. Module 1 looks at the key techniques used in capital budgeting, such as NPV, IRR, and the payback method, using the example of a small airline company throughout.
Module 2 looks at the key accounting metrics use to measure company business performance, such as return on equity, free cash flow to the firm, free cash flow to equity, enterprise value, and economic profit.
On completion of this tutorial, you will be able to:
- Recognize the importance of capital budgeting in selecting which investments and expenditures will increase shareholder wealth
- Identify the investment appraisal techniques used by analysts, including net present value, investment rate of return (IRR), the payback method, the discounted payback method, accounting rate of return, and profitability index (PI)
- Identify the accounting metrics that companies use to measure financial performance
- Recall the measures used to determine how well a company has managed its assets to generate profits
- Recognize alternative approaches to evaluate business performance, such as free cash to the firm, free cash flow to equity, enterprise value, and economic profit
Module 1: Corporate Finance – Project Appraisal & Capital Budgeting
Topic 1: Capital Budgeting
Topic 2: Project Appraisal Methods
Module 2: Corporate Finance – Measuring Business Performance
Topic 1: Performance Metrics
Topic 2: Free Cash Flow (FCF)