Corporate Finance Analysis

Unit 1 – Corporate Finance & Financial Statements

Unit 2 – Financial Statements: Balance Sheet & Income

Unit 3 – Cash Flow Statement Analysis

Unit 4 – Financial Ratio Analysis

Unit 5 – Earnings Quality & Revenue Recognition

Unit 6 – Time Value of Money & Cash Flow Analysis

Unit 7 – Bond and Stock Valuation

Unit 8 – Capital Budgeting: Project Evaluation

Unit 9 – Portfolio Theory and CAPM: Risk & Return

Unit 10 – Cost of Capital Estimation

Unit 11 – Capital Structure and Leverage Optimization

Unit 12 – Dividend Policy & Share Buybacks

Unit 13 – Working Capital Management

Unit 14 – Mergers & Acquisitions: Corporate Restructuring

Unit 15 – International Finance & Forex Risk

## What do you learn in Corporate Finance and Financial Statement Analysis

You'll get the lowdown on how companies make financial decisions and analyze their performance. The course covers capital budgeting, risk assessment, financial planning, and interpreting financial statements. You'll learn to evaluate investment opportunities, understand corporate valuation, and assess a company's financial health using key ratios and metrics.

## Is Corporate Finance and Financial Statement Analysis hard?

It can be challenging, especially if you're not a numbers person. The concepts aren't rocket science, but there's a lot to wrap your head around. You'll need to be comfortable with math and have a good grasp of accounting basics. The real trick is applying the theories to real-world scenarios, which can get pretty complex. But with some effort and practice, most students manage to get through it.

## Tips for taking Corporate Finance and Financial Statement Analysis in college

1. Use [Fiveable Study Guides](https://fiveable.me/cram-mode) to help you cram 🌶️
2. Practice, practice, practice! Work through lots of problem sets and case studies
3. Stay on top of financial news - it'll help you connect concepts to real-world events
4. Form a study group to tackle complex problems together
5. Master Excel - it's your best friend for financial modeling and analysis
6. Watch "The Big Short" for a entertaining look at financial markets and risk
7. Read "Financial Intelligence" by Karen Berman for a user-friendly intro to financial statements
8. Don't just memorize formulas - understand the logic behind them

## Common pre-requisites for Corporate Finance and Financial Statement Analysis

1. Principles of Accounting: This course introduces you to the basics of financial accounting and reporting. You'll learn how to read and prepare financial statements, which is crucial for corporate finance analysis.

2. Microeconomics: In this class, you'll study individual markets, supply and demand, and how firms make decisions. It provides a foundation for understanding corporate behavior and market dynamics.

3. Statistics: This course covers probability, data analysis, and statistical inference. You'll need these skills to interpret financial data and make informed decisions in corporate finance.

## Classes similar to Corporate Finance and Financial Statement Analysis

1. Investment Analysis: This course dives into evaluating different types of investments, including stocks, bonds, and derivatives. You'll learn about portfolio theory and risk management strategies.

2. Mergers and Acquisitions: Here, you'll explore the process of corporate restructuring through mergers, acquisitions, and divestitures. The class covers valuation techniques and deal structuring.

3. Financial Markets and Institutions: This course examines the role of financial institutions in the economy. You'll learn about banking, insurance, and the functioning of capital markets.

4. International Finance: In this class, you'll study global financial markets, exchange rates, and multinational financial management. It's perfect for understanding finance in a global context.

## Majors related to Corporate Finance and Financial Statement Analysis

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

2. Accounting: Deals with recording, analyzing, and reporting financial transactions. Students develop skills in financial reporting, auditing, and tax planning.

3. Economics: Studies how societies allocate resources and make economic decisions. Students learn about market behavior, economic policy, and financial systems.

4. Business Administration: Provides a broad overview of business operations, including finance, marketing, and management. Students gain skills in strategic planning and organizational leadership.

## What can you do with a degree in Corporate Finance and Financial Statement Analysis?

1. Financial Analyst: Evaluates investment opportunities and provides recommendations to businesses or individuals. They analyze financial data, create financial models, and forecast future performance.

2. Investment Banker: Helps companies raise capital by issuing stocks or bonds and advises on mergers and acquisitions. They work on complex financial transactions and need strong analytical and interpersonal skills.

3. Corporate Finance Manager: Oversees a company's financial activities, including budgeting, financial planning, and capital structure decisions. They work closely with other departments to ensure the company's financial health and growth.

4. Credit Analyst: Assesses the creditworthiness of individuals or companies seeking loans. They analyze financial statements, credit history, and market conditions to determine lending risks.

## Corporate Finance and Financial Statement Analysis FAQs

1. How much math is involved in this course? While you don't need to be a math whiz, you should be comfortable with algebra and basic statistics. The focus is more on applying mathematical concepts to financial problems.

2. Can I use a calculator during exams? Most professors allow financial calculators, but check your syllabus. Some might restrict certain functions or require specific calculator models.

3. How does this course relate to the CFA exam? Many topics covered in this course align with the CFA curriculum. It's a great foundation if you're considering pursuing the CFA designation in the future.

4. Are there any group projects in this class? Many professors incorporate group projects or case studies to simulate real-world financial analysis scenarios. It's a great way to practice teamwork and presentation skills.

Finance

1.2 Overview of Financial Statements

1.1 Fundamentals of Corporate Finance

1.3 Stakeholders and Financial Decision-Making

1.4 Ethical Considerations in Corporate Finance

2.3 Interrelationships Between Balance Sheet and Income Statement

2.1 Balance Sheet Components and Analysis

2.4 Common-Size Analysis and Trend Analysis

2.2 Income Statement Structure and Interpretation

3.2 Direct vs. Indirect Methods of Cash Flow Reporting

3.1 Cash Flow Statement Components

3.3 Free Cash Flow Analysis

4.4 DuPont Analysis

4.2 Profitability and Market Value Ratios

4.3 Solvency and Leverage Ratios

4.1 Liquidity and Efficiency Ratios

5.1 Earnings Management and Quality Indicators

5.3 Accrual Accounting and Its Impact on Financial Statements

5.2 Revenue Recognition Principles and Practices

6.1 Present and Future Value Concepts

6.3 Discounted Cash Flow (DCF) Valuation Techniques

6.2 Annuities and Perpetuities

7.3 Preferred Stock and Hybrid Securities

7.1 Bond Valuation and Yield Measures

7.2 Common Stock Valuation Models

8.2 Payback Period and Profitability Index

8.4 Capital Rationing and Project Selection

8.1 Net Present Value (NPV) and Internal Rate of Return (IRR)

8.3 Real Options in Capital Budgeting

9.1 Risk and Return Fundamentals

9.3 Capital Asset Pricing Model (CAPM)

9.4 Systematic and Unsystematic Risk

9.2 Modern Portfolio Theory

10.3 Marginal Cost of Capital

10.2 Weighted Average Cost of Capital (WACC)

10.1 Components of Cost of Capital

11.1 Capital Structure Theories

11.3 Optimal Capital Structure Determination

11.2 Financial and Operating Leverage

12.3 Share Repurchase Programs and Their Impact

12.2 Types of Dividends and Payout Ratios

12.1 Dividend Policy Theories and Practices

13.1 Cash and Marketable Securities Management

13.3 Short-Term Financing and Credit Management

13.2 Inventory and Accounts Receivable Management

14.3 Corporate Restructuring and Divestitures

14.2 Valuation and Financing of M&A Transactions

14.1 Types of Mergers and Acquisitions

15.1 Foreign Exchange Markets and Currency Risk

15.2 International Capital Budgeting

15.3 Global Financial Management Strategies

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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.

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