This course is part of the Financial Management Specialization

4.7
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1,084 ratings

Heitor Almeida +1 more instructor

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Financial Management SpecializationUniversity of Illinois at Urbana-Champaign

About this Course

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In this course you will learn how to use key finance principles to understand and measure business success and to identify and promote true value creation. You will learn how to use accounting information to form key financial ratios to measure a company’s financial health and to manage a company's short-term and long-term liquidity needs.  You will also learn how to use valuation techniques to make sound business investment and acquisition decisions. Finally, you will learn how to incorporate risk and uncertainty into investment decisions and how to evaluate the performance of existing investments.
Upon successful completion of this course you will be able to:
•	Understand how companies make investment decisions that create value for shareholders
•	Use accounting statements to measure the financial health of a company
•	Forecast and manage a company’s short- and long-term liquidity needs
•	Measure the contribution of a new project or acquisition to shareholder value
•	Incorporate risk into investment decisions using the appropriate discount rates
•	Evaluate the performance of a company or divisions of a company

This course was previously entitled Financial Evaluation and Strategy: Corporate Finance. The course received an average rating of 4.7 out of 5 based on 177 reviews over the period of September 2015 through August 2016.  A detailed breakdown of ratings and reviews received for the prior version of the course, which is identical in content to the current course, is provided in the course orientation page.

This course is part of the iMBA offered by the University of Illinois, a flexible, fully-accredited online MBA at an incredibly competitive price. For more information, please see the Resource page in this course and onlinemba.illinois.edu.

Flexible deadlines

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Shareable Certificate

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Coursera Labs

Includes hands on learning projects.

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Course 5 of 7 in the

Financial Management Specialization

Approx. 23 hours to complete

English

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Skills you will gain

Corporate Finance
Project
Finance
Mergers And Acquisitions (M&A)

Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Coursera Labs

Includes hands on learning projects.

Learn more about Coursera Labs

Course 5 of 7 in the

Financial Management Specialization

Approx. 23 hours to complete

English

Could your company benefit from training employees on in-demand skills?

Try Coursera for Business

Instructors

Instructor rating

4.65/5 (152 Ratings)

Heitor Almeida

Professor of Finance, Stanley C. and Joan J. Golder Chair in Corporate Finance

Department of Finance, College of Business

74,358 Learners

5 Courses

Stefan Zeume

Assistant Professor of Finance

Gies College of Business

51,048 Learners

2 Courses

Offered by

University of Illinois at Urbana-Champaign

Get a head start on your degree

This course is part of the Master of Business Administration (iMBA) from University of Illinois at Urbana-Champaign. If you are admitted to the full program, your coursework will count towards your degree learning and all of your progress will transfer with you.

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Syllabus - What you will learn from this course

Content Rating94%(3,928 ratings)

Week1

Week 1

2 hours to complete

Course Overview

2 hours to complete

4 videos (Total 13 min), 5 readings, 1 quiz

4 hours to complete

Module 1: The Objective and Language of Corporate Finance

In Module 1, we will discuss the objectives of the corporation. We will introduce the concept of shareholder value and discuss the pros and cons of maximizing stock prices. We will then learn how to calculate financial ratios that measure concepts such as liquidity, leverage, and profitability. We will work with accounting statements and financial data from real world companies and learn how to use this data to measure the financial health of companies and make comparisons with competitors.

4 hours to complete

11 videos (Total 100 min), 3 readings, 4 quizzes

11 videos

Objectives and Overview4mWhy Maximizing the Stock Price is a Reasonable Goal For a Company10mConflicts Between Shareholder Value Maximization and Society10mThe Agency Problem and Corporate Governance8m Balance Sheet Ratios: Introduction4mBalance Sheet Ratios: Liquidity11mBalance Sheet Ratios: Solvency11mIncome Statement Ratios: Profitability14mCash Flow Statement Ratios14mValuation Ratios9mModule 1 Review2m

3 readings

Module 1 Overview10mModule 1 Readings10mModule 1 Spreadsheets and Other Resources10m

4 practice exercises

Module 1 Practice Quiz 130mModule 1 Practice Quiz 230mModule 1 Practice Quiz 330mThe Objective of the Corporation and Analysis of Financial Ratios Graded Quiz30m

Week2

Week 2

6 hours to complete

Module 2: Financial Planning

In Module 2, we will learn models that allow us to forecast and manage a company's short-term investments such as capital expenditures. We will forecast the future financial statements of a real world company and learn how to figure out how much external financing the company will need. We will then use real world examples to learn how short-term investments in working capital determine a company's need for short-term financing.

6 hours to complete

13 videos (Total 110 min), 3 readings, 5 quizzes

13 videos

Objectives and Overview4mLong-Term Financial Planning6mForecasting Income Statements8mForecasting Cash Flow Statements8mForecasting Balance Sheets8mThe Capital Structure Decision7mInvestments in Working Capital6mWorking Capital Ratios8mShort-Term Financial Planning: Inventory11mSeasonality and Receivables10mShort-Term Liabilities and Liquidity Risk11mModule 2 Review3mHonors Assignment 1 Solution12m

3 readings

Module 2 Overview10mModule 2 Readings10mModule 2 Spreadsheets and Other Resources10m

4 practice exercises

Module 2 Practice Quiz 130mModule 2 Practice Quiz 230mModule 2 Practice Quiz 330mFinancial Planning Graded Quiz30m

Week3

Week 3

5 hours to complete

Module 3: Making Investment Decisions

In Module 3, we will learn tools that allow us to measure the contribution of a new investment to shareholder value. We will learn how to calculate the net present value (NPV) of an investment and how to use the NPV to make a decision on whether to make the investment or not. We will also learn to calculate the rate of return (IRR) on an investment project and how to properly use the IRR in investment decisions. Finally, we will learn how to incorporate real options into investment analysis to be able to make decisions about investments such as R&D (research and development).

5 hours to complete

13 videos (Total 128 min), 2 readings, 5 quizzes

13 videos

Objectives and Overview5mNPV Example - Speeding Up the Collection of Receivables9mThe Concept of Net Present Value (NPV)15mCalculating NPV in Excel4mThe Relationship Between NPV and Shareholder Value7mThe Internal Rate of Return (IRR)11mUsing the IRR to Evaluate Investments6mProblems with the IRR11mFree Cash Flow Formulas15mReal Options - Valuing R&D15mThe Option to Wait - Gold Mine Example14mThe Option to Abandon a Project8mModule 3 Review2m

2 readings

Module 3 Overview10mModule 3 Readings10m

5 practice exercises

Module 3 Practice Quiz 130mModule 3 Practice Quiz 230mModule 3 Practice Quiz 330mModule 3 Practice Quiz 430mMaking Investment Decisions Graded Quiz30m

Week4

Week 4

7 hours to complete

Module 4: Mergers and Acquisitions, Risk, and Performance Evaluation

In Module 4, we will apply our investment valuation tools to understand when a merger between two companies creates shareholder value. We will learn to distinguish between good and bad reasons for companies to engage in mergers and acquisitions (M&A), and we will learn how to price an M&A deal. We will also learn the specific characteristics of leveraged buyouts (LBOs) and how they can create value for shareholders. We will then learn how to incorporate risk into investment valuation by changing discount rates. We will calculate the weighted-average cost of capital (WACC) for a real world company and learn how to use WACC to value investments and to measure the performance of the company or a division of the company.

7 hours to complete

15 videos (Total 170 min), 3 readings, 5 quizzes

15 videos

Objectives and Overview6mGood and Bad Reasons to Engage in M&A Transactions16mGood and Bad Reasons to Engage in M&A Transactions16mSynergy Valuation and Deal Pricing12mMeans of Payment and Stock Market Reaction to M&A Deals14mLeveraged Buyouts19mSensitivity Analysis8mUsing Discount Rates to Incorporate Risk11mEstimating the Required Return on Equity11mFinding Beta10mEstimating the WACC8mPerformance Evaluation: Economic Value-Added (EVA)7mUsing EVA to Measure Performance12mModule 4 Review2mHonors Assignment 2 Solutions13m

3 readings

Module 4 Overview10mModule 4 Readings10mModule 4 Spreadsheets and Other Resources10m

4 practice exercises

Module 4 Practice Quiz 130mModule 4 Practice Quiz 230mModule 4 Practice Quiz 330mMergers and Acquisitions, Risk, and Performance Evaluation Graded Quiz30m

28 minutes to complete

Course Conclusion

28 minutes to complete

2 videos (Total 8 min), 2 readings

Reviews

4.7

180 reviews

5 stars
81.18%
4 stars
15.31%
3 stars
1.38%
2 stars
0.73%
1 star
1.38%

TOP REVIEWS FROM CORPORATE FINANCE I: MEASURING AND PROMOTING VALUE CREATION

by MDec 4, 2017

This course provides an effective overview of Financial analysis methods in a way that drives contextual understanding and application. Highly Recommended.

by SGApr 8, 2020

Good coverage of basic concepts of Corporate finance. Not much suitable for professionals / CA looking out for advanced knowledge as we have already studied 90% of what is being taught here.

by ANNov 18, 2020

This course helped me to learn a lot about Corporate Finance, especially about mergers & acquisitions, LBO and IRR and many more. Mainly it was thanks to the approachable method of the teacher.

by JEJan 22, 2019

Very practical and engaging topics, some question errors need addressing but minor changes to avoid wasted time on an overall fantastic course!

View all reviews

About the Financial Management Specialization

This Specialization covers the fundamentals of strategic financial management, including financial accounting, investments, and corporate finance. You will learn to evaluate major strategic corporate and investment decisions and to understand capital markets and institutions from a financial perspective, and you will develop an integrated framework for value-based financial management and individual financial decision-making.

The Financial Management Specialization is part of the University of Illinois iMBA Program. Each course in this Specialization also fulfills a portion of the requirements for a University of Illinois course that can earn you college credit. When you complete the Financial Management Specialization, you will: · Have a solid foundation in developing an integrated framework for strategic financial decision-making. · Have a thorough understanding of financial statements and the financial information they provide, and be able to critically evaluate and analyze cash flows statements. · Understand the management and evaluation of portfolios and firm valuation techniques. · Understand how to incorporate risk and uncertainty into investment decisions and understand how companies make financing and investment decisions.

Frequently Asked Questions

When will I have access to the lectures and assignments?
Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:
The course may not offer an audit option. You can try a Free Trial instead, or apply for Financial Aid.
The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
Is financial aid available?
Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

More questions? Visit the Learner Help Center.

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Corporate Finance I: Measuring and Promoting Value Creation

About this Course

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