Corporate Finance: Financial Analysis and Decision-Making

Business

Website: Udemy
Author

What you will learn:


Apply financial ratios (liquidity, profitability, efficiency) to assess the financial health of companies accurately.

Analyze financial statements using current ratio, quick ratio, and cash ratio to evaluate the company's liquidity position.

Evaluate solvency by calculating debt ratio, debt-to-equity ratio, and interest coverage ratio for a comprehensive assessment.

Assess operational efficiency using inventory turnover, receivables turnover, and asset turnover ratios to identify areas of improvement.

Utilize forecasting and budgeting techniques to predict sales and cash flow accurately for effective financial planning.

Perform break-even analysis and analyze leverage to determine the profitability and risk of the company.

Evaluate financing decisions by considering optimal capital structure and its impact on the cost of capital.

Manage current assets, including cash, inventory, and receivables, to optimize operational efficiency.

Apply time value of money principles to calculate present and future values of cash flows for investment analysis.

Value bonds, common stock, and preferred stock using appropriate valuation methods such as discounted cash flow and comparable analysis.

Calculate the cost of debt, cost of equity, and weighted average cost of capital (WACC) to assess the investment's financial feasibility.

Apply capital budgeting techniques (NPV, IRR, payback period) to evaluate investment projects' profitability and viability.

Use risk tools such as standard deviation, beta, and diversification to assess and manage investment risk.

Understand the role of investment banking in initial public offerings (IPOs), debt offerings, and mergers and acquisitions (M&A).

Analyze equity financing options and evaluate their impact on the company's financial structure.

Evaluate the impact of dividend policy on shareholder wealth and the company's financial stability.

Examine convertible bonds and warrants as financial instruments for corporate financing strategies.

Understand the process of corporate acquisitions and post-acquisition integration for effective business expansion

Evaluate the impact of foreign currency on financial statements in international operations and assess exchange rate risk.

Apply financial analysis techniques to assess profitability and financial performance in foreign markets.