Corporate Finance Essentials II

This module provides a comprehensive overview of the course, revisiting key concepts from Corporate Finance Essentials and setting the stage for the topics to be covered in Corporate Finance Essentials II. Learners will gain insights into risk and return, cost of capital, project evaluation, and corporate value creation, laying the groundwork for the subsequent modules.

This module delves into the concept of market efficiency, exploring factors that determine market efficiency, different levels of efficiency, and the implications for investment strategies. Learners will gain a deeper understanding of fundamental and technical analysis, as well as the challenges of beating the market.

Through this module, learners will explore various aspects of bonds, including bond types, valuation, yield to maturity, and default risk. Real-life case studies will illustrate the practical application of bond valuation principles, equipping learners with essential knowledge in bond analysis and investment strategies.

This module focuses on stock valuation, specifically through the method of relative valuation using multiples. Learners will gain insights into critical issues related to multiples, such as the P/E ratio, benchmarks, and the PEG ratio. Real-world case studies will provide practical applications of stock valuation principles.

Exploring the fundamentals of capital structure, this module delves into debt ratios, required returns, and their implications for corporate financing decisions. Through a case study and reflections on capital structure, learners will gain a comprehensive understanding of the considerations involved in determining an optimal capital structure.

This module delves into the complexities of dividend policy, examining relevant variables such as environment, clienteles, growth, smoothing, signals, and taxes. Learners will also explore the impact of share buybacks and gain insights into the critical decisions companies face regarding dividend policy and its implications for corporate finance.