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Understanding the Basics of Corporate Finance - ONLINE

  • USD 3,168

  • online
  • United States (New York) |
  • Date not specified
  • Certificate

Almost every decision in the corporate world is financial in nature. There are numerous financial implications when purchasing another firm (e.g., a competitor or supplier), launching an expensive advertising campaign, deciding to purchase, rent or buy a new production facility the list goes on. This course will cover the basics of discounted cash flow analysis and rigorous cash flow forecasts derived from P&L projections. Participants will understand rules for making investment decisions, including the net present value (NPV) rule and internal rate of return (IRR) rule, as well as the treatment of real options. Participants will also learn how to compute the right discount rate, or cost of capital, to account for the time value of money as well as risk. This course will utilize numerical examples to give participants hands-on practice with each of the methods taught.

Program Benefits

During this course, participants will: 
  • Value Learn how to make value-maximizing investment decisions 
  • Rules Appreciate the uses and misuses of popular decision rules (NPV, IRR) 
  • Forecasting Analyze and make cash flow forecasts from projected income statements

Who Should Attend

Although there are no formal education or background requirements, this course is designed for executives who meet the criteria below. While we strongly encourage global participation, please note that all courses are taught in English. Proficiency in written and spoken English is required. 

  • Years of Experience Designed for professionals with 5+ years of work experience 
  • Job Functions Ideal for professionals who need to make financial decisions, or who frequently communicate with financial decision makers 
  • Prerequisites Intended for individuals who want to improve their financial literacy

Faculty

Holger Mueller
Nomura Professor of Finance

*Program faculty is subject to change

Curriculum

Session 1: Discounted Cash-Flow Analysis and Rules to Make Investment Decisions

  • Present Values, Perpetuities, Annuities
  • Net Present Value Rule, Internal Rate of Return (IRR) Rule
  • Shortcomings of the IRR Rule
  • Payback Rule
  • Capital Budgeting

Session 2: Real Options

  • Option to Wait and the Value of New Information
  • Option to Expand
  • Option to Scale Investments Up or Down

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