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. Also learn how to use valuation techniques to make sound business investment and acquisition decisions. Finally, learn how to incorporate risk and uncertainty into investment decisions, and how to evaluate the performance of existing investments.
This course will be broken up into 4 weekly modules covering the following topics:
Week 1: Objectives of the Corporation; Financial Analysis & Financial Ratios
Week 2: Financial Planning Models
Week 3: Making Investment Decisions
Week 4: Mergers and Acquisitions, Risk, and Performance Evaluation
Accounting: Basic understanding of financial statements—the income statement, the balance sheet, and the cash flow statement—is required. Ideally you will have taken Managerial Accounting in this Specialization.
Statistics: Some understanding of probabilities, averages, and standard deviation. Regression analysis is also useful, though not required.
Mathematics: Basic algebra is sufficient.
Finance: Ideally you will have taken Financial Evaluation and Strategy: Investments in this Specialization. We will assume some knowledge of how financial markets work, valuation of securities, and the CAPM (capital asset pricing model).
The course will include readings from the freely available textbook: Ivo Welch, Corporate Finance: 3rd Edition,2014.
Each week will include readings, video lectures, and quizzes.
How does this course fit into the Improving Business Finances and Operations Specialization?
This is the fourth course in the track.