Corporate Finance Course

Lesson 1 • Corporate Governance and Agency Theory

Examines principal-agent conflicts and governance mechanisms that align incentives. Links governance quality to firm value and financing choices.

Lesson 2 • The Corporate Finance Landscape

Defines corporate finance scope, key decisions, and stakeholder roles. Establishes the conceptual map students use throughout the course.

Lesson 3 • Time Value of Money

Teaches present and future value mechanics for single sums and annuities. Provides the mathematical foundation for all valuation and investment analysis.

Lesson 4 • Risk and Return Fundamentals

Introduces expected return, variance, and the risk-return tradeoff. Prepares students for portfolio theory and cost of capital estimation.

Lesson 1 • Weighted Average Cost of Capital

Constructs WACC using market-value weights and component costs. Students apply WACC as the hurdle rate for capital budgeting and firm valuation.

Lesson 2 • Cost of Equity Estimation

Covers CAPM, the dividend growth model, and multifactor approaches to equity cost. Accurate equity cost estimation anchors WACC and equity valuation.

Lesson 3 • Beta Estimation for Private Firms

Adapts public-market beta techniques to unlisted companies using comparable firms. Enables cost of capital estimation when market data is unavailable.

Lesson 1 • Real Options in Capital Budgeting

Introduces option-to-expand, abandon, and defer as embedded project flexibilities. Demonstrates how real options increase project value beyond static NPV.

Lesson 2 • Net Present Value and IRR

Derives NPV and IRR decision rules and their theoretical basis. Students apply both methods and understand when each is appropriate.

Lesson 3 • Sensitivity, Scenario, and Simulation Analysis

Applies sensitivity and Monte Carlo simulation to quantify project risk. Equips students to stress-test investment decisions before committing capital.

Lesson 4 • Identifying and Estimating Cash Flows

Defines incremental cash flows and common estimation pitfalls. Accurate cash flow forecasting is the prerequisite for all capital budgeting methods.

Lesson 1 • Hybrid and Structured Financing

Examines mezzanine debt, preferred equity, and asset-backed structures. Addresses complex financing needs that blend debt and equity characteristics.

Lesson 2 • Equity Financing and IPO Process

Covers the initial public offering process from filing to pricing and aftermarket. Connects equity issuance mechanics to cost of capital and ownership dilution.

Lesson 3 • Private Equity and Venture Capital

Describes private equity fund structures, deal stages, and return mechanics. Relevant for firms seeking growth capital outside public markets.

Lesson 4 • Leasing as a Financing Alternative

Compares operating and finance leases on cost, flexibility, and balance sheet impact. Positions leasing within the broader capital structure decision.

Lesson 1 • Leverage and Operating Risk Interaction

Distinguishes operating leverage from financial leverage and their combined effect. Guides students in matching debt capacity to business risk.

Lesson 2 • Financial Distress and Bankruptcy

Examines distress triggers, costs, and restructuring options. Connects leverage decisions to downside risk and creditor-shareholder conflicts.

Lesson 3 • Modigliani-Miller Propositions

Derives MM irrelevance theorems and their assumptions. Establishes the theoretical baseline from which real-world capital structure theories depart.

Lesson 4 • Pecking Order and Market Timing Theories

Explains financing hierarchy driven by information asymmetry and market conditions. Contrasts with trade-off theory to explain observed financing behavior.

Lesson 1 • Setting Payout Policy in Practice

Integrates theory with practical constraints to design a sustainable payout policy. Students apply a framework balancing growth needs, cash flow, and investor preferences.

Lesson 2 • Dividend Policy Theories

Covers dividend irrelevance, bird-in-hand, and tax preference theories. Provides the theoretical lens for evaluating real-world payout decisions.

Lesson 3 • Signaling and Information Content

Examines how dividend changes convey private information to markets. Links payout decisions to stock price reactions and investor expectations.

Lesson 4 • Share Repurchases and Buybacks

Analyzes open-market, tender offer, and Dutch auction repurchase methods. Compares buybacks to dividends on tax efficiency and signaling dimensions.

Lesson 1 • Asset-Based and Liquidation Valuation

Values firms using adjusted book value and orderly or forced liquidation approaches. Relevant for distressed firms, holding companies, and asset-intensive businesses.

Lesson 2 • Comparable Company Analysis

Derives valuation multiples from a peer group of publicly traded companies. Teaches selection criteria, multiple calculation, and application to target firms.

Lesson 3 • Discounted Cash Flow Valuation

Builds a DCF model from free cash flow forecasts, WACC, and terminal value. Integrates capital budgeting and cost of capital skills into a complete valuation.

Lesson 4 • Precedent Transaction Analysis

Values a firm using acquisition multiples from comparable past deals. Captures control premiums and synergy expectations embedded in transaction prices.

Lesson 1 • M&A Strategy and Rationale

Examines synergy types, strategic motives, and value creation logic in M&A. Distinguishes value-creating from value-destroying acquisition rationales.

Lesson 2 • Due Diligence and Negotiation

Outlines financial, legal, and operational due diligence processes. Connects diligence findings to deal pricing, representations, and warranties.

Lesson 3 • Deal Structure and Consideration

Covers cash, stock, and mixed consideration with tax and risk implications. Deal structure affects value distribution between acquirer and target shareholders.

Lesson 4 • Deal Valuation and Synergy Estimation

Applies DCF and multiples to value targets and quantify synergies. Students determine maximum bid price and assess deal economics rigorously.