Advanced Corporate Finance

Unit 1 – Corporate Finance Fundamentals

Unit 2 – Financial Analysis & Planning

Unit 3 – Capital Budgeting

Unit 4 – Cost of Capital

Unit 5 – Capital Structure

Unit 6 – Dividend Policy

Unit 7 – Working Capital Management

Unit 8 – Corporate Restructuring

Unit 9 – Risk Management

Unit 10 – Corporate Governance & Ethics

Unit 11 – Special Topics in Corporate Finance

Unit 12 – International Corporate Finance

## What do you learn in Advanced Corporate Finance

Advanced Corporate Finance digs into complex financial decision-making for big companies. You'll tackle topics like capital structure, dividend policy, mergers and acquisitions, and risk management. The course covers valuation techniques, corporate governance, and international financial management. It's all about understanding how corporations make strategic financial choices to maximize shareholder value and navigate global markets.

## Is Advanced Corporate Finance hard?

Advanced Corporate Finance can be pretty challenging, not gonna lie. It builds on basic finance concepts and throws in a lot of complex theories and mathematical models. The workload can be heavy, with case studies and financial modeling assignments that'll keep you up late. But here's the thing: if you've got a solid foundation in finance and you're willing to put in the work, it's totally doable. Just be ready for some brain-bending problem-solving.

## Tips for taking Advanced Corporate Finance in college

1. Use [Fiveable Study Guides](https://fiveable.me/cram-mode) to help you cram 🌶️
2. Master financial modeling software like Excel or R
3. Stay on top of current financial news and trends
4. Form study groups to tackle complex case studies
5. Practice calculating WACC and using valuation methods regularly
6. Don't just memorize formulas, understand the logic behind them
7. Watch "The Big Short" for a fun take on financial markets
8. Read "Barbarians at the Gate" for M&A insights

## Common pre-requisites for Advanced Corporate Finance

1. Financial Management: This course covers the basics of financial decision-making in corporations. You'll learn about time value of money, risk and return, and capital budgeting.

2. Corporate Finance: Building on Financial Management, this class dives deeper into capital structure theories and dividend policies. It's crucial for understanding the advanced concepts you'll encounter later.

3. Investment Analysis: This course focuses on portfolio theory and security valuation. It'll give you a solid foundation in understanding how investors make decisions, which is key for corporate finance.

## Classes similar to Advanced Corporate Finance

1. Mergers and Acquisitions: Focuses on the strategic and financial aspects of corporate restructuring. You'll learn about deal structures, valuation methods, and post-merger integration.

2. Financial Risk Management: Covers techniques for identifying, measuring, and managing financial risks. You'll dive into derivatives, hedging strategies, and value-at-risk models.

3. International Financial Management: Explores financial decision-making in a global context. You'll learn about exchange rate risk, international capital budgeting, and multinational working capital management.

4. Behavioral Finance: Examines how psychological factors influence financial decisions. It challenges traditional finance theories by incorporating human behavior into financial models.

## Majors related to Advanced Corporate Finance

1. Finance: Focuses on managing money and investments for individuals, businesses, and institutions. Students learn about financial markets, risk management, and investment strategies.

2. Economics: Studies how societies allocate resources and make decisions. It covers microeconomics, macroeconomics, and econometrics, providing a broader context for financial decision-making.

3. Business Administration: Offers a comprehensive overview of business operations, including finance, marketing, and management. Students gain a well-rounded understanding of how businesses function and compete.

4. Accounting: Concentrates on recording, analyzing, and interpreting financial information. Students learn to prepare financial statements and understand the implications of financial data for decision-making.

## What can you do with a degree in Advanced Corporate Finance?

1. Investment Banker: Advises companies on financial strategies, mergers and acquisitions, and raising capital. They work long hours but can earn big bucks and get involved in high-profile deals.

2. Financial Analyst: Evaluates investment opportunities and provides recommendations to businesses or individuals. They crunch numbers, create financial models, and stay on top of market trends.

3. Corporate Finance Manager: Oversees a company's financial activities, including budgeting, financial planning, and capital structure decisions. They play a crucial role in shaping a company's financial strategy and growth.

4. Risk Manager: Identifies and assesses financial risks facing an organization. They develop strategies to mitigate these risks and ensure the company's financial stability.

## Advanced Corporate Finance FAQs

1. How much math is involved in Advanced Corporate Finance? While you don't need to be a math genius, you should be comfortable with algebra, statistics, and financial calculations. The course involves a fair amount of quantitative analysis and financial modeling.

2. Can I take this course if I'm not a finance major? It's possible, but you'll need a strong background in finance fundamentals. Most schools require prerequisites in basic finance and accounting before allowing students to enroll.

3. How relevant is this course for entrepreneurship? Very relevant! Understanding advanced financial concepts can help entrepreneurs make better decisions about funding, growth strategies, and risk management for their startups.

Finance

1.2 Agency Theory and Corporate Governance

1.1 The Role of the Financial Manager

1.4 Time Value of Money Review

1.3 Financial Statements and Cash Flow

2.1 Financial Ratio Analysis

2.3 Sustainable Growth Rate

2.2 Pro Forma Financial Statements

2.4 External Financing and Growth

3.2 Capital Budgeting Process

3.3 Project Cash Flows and Incremental Cash Flows

3.4 Risk Analysis in Capital Budgeting

3.5 Real Options in Capital Budgeting

3.1 Net Present Value and Internal Rate of Return

4.1 Components of Cost of Capital

4.2 Weighted Average Cost of Capital (WACC)

4.3 Divisional and Project Cost of Capital

4.4 Marginal Cost of Capital

5.2 Trade-off Theory of Capital Structure

5.3 Pecking Order Theory

5.4 Signaling with Capital Structure

5.5 Capital Structure and Agency Costs

5.1 Modigliani-Miller Theorem

6.1 Types of Dividends

6.2 Dividend Irrelevance Theory

6.3 Dividend Relevance Theories

6.5 Stock Repurchases

6.4 Dividend Stability

7.1 Cash and Liquidity Management

7.2 Credit and Receivables Management

7.4 Short-term Financing

7.3 Inventory Management

8.1 Mergers and Acquisitions

8.4 Bankruptcy and Financial Distress

8.2 Divestitures and Spin-offs

8.3 Leveraged Buyouts

9.3 Enterprise Risk Management

9.4 International Risk Management

9.1 Types of Financial Risks

9.2 Hedging with Derivatives

10.4 Insider Trading and Ethics

10.3 Corporate Social Responsibility

10.1 Board of Directors

10.2 Executive Compensation

11.1 Initial Public Offerings (IPOs)

11.3 Leasing

11.2 Private Equity and Venture Capital

11.4 Hybrid Securities

12.1 Foreign Exchange Risk

12.2 International Capital Budgeting

12.3 Cross-border Mergers and Acquisitions

12.4 International Taxation

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