CFA Corporate Finance Level 2
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CFA Corporate Finance Level 2

Learn CFA Corporate Finance Level 2 Syllabus with more illustrations and case studies
4.0 (6 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
2,499 students enrolled
Last updated 5/2017
English
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Includes:
  • 17 hours on-demand video
  • 5 Supplemental Resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Master Reading 23 Capital Budgeting
  • Master Reading 24 Capital Structure
  • Master Reading 25: Dividends and Shares Repurchase: Analysis
View Curriculum
Requirements
  • CFA Level 1 Corporate Finance
Description

Welcome to Corporate Finance CFA Level 2 Course. 

As the name indicates, this course covers Corporate Finance Paper of Level 2 of CFA Exams.

About Coverage:

Section 1 will cover Reading 23: Capital Budgeting

Section 2 will cover Reading 24: Capital Structure

Section 3 will cover Reading 25:Dividends and Share Purchases: Analysis

Teaching and Learning Style:

This course is structured in self paced learning style. It is suggested to take screenshots of case studies for reference back during problem solving. Approaching the course with note book and pen or MS Excel and solving problems paralelly along with instructor will make you feel like attending real class and improve your listening and learning experience.   

 Teaching and Learning outcomes:

By taking this course, you will be able to

  1. calculate the yearly cash flows of expansion and replacement capital projects and evaluate how the choice of depreciation method affects those cash flows;
  2. explain how inflation affects capital budgeting analysis;
  3. evaluate capital projects and determine the optimal capital project in situations of               a) mutually exclusive projects with unequal lives, using either the least common multiple of lives approach or the equivalent annual annuity approach, and b) capital rationing;
  4. explain how sensitivity analysis, scenario analysis, and Monte Carlo simulation can be used to assess the stand-alone risk of a capital project;
  5. explain and calculate the discount rate, based on market risk methods, to use in valuing a capital project;
  6. describe types of real options and evaluate a capital project using real options;
  7. describe common capital budgeting pitfalls;
  8. calculate and interpret accounting income and economic income in the context of capital budgeting;
  9. distinguish among the economic profit, residual income, and claims valuation models for capital budgeting and evaluate a capital project using each.
  10. explain the Modigliani–Miller propositions regarding capital structure, including the effects of leverage, taxes, financial distress, agency costs, and asymmetric information on a company’s cost of equity, cost of capital, and optimal capital structure;
  11. describe target capital structure and explain why a company’s actual capital structure may fluctuate around its target;
  12. describe the role of debt ratings in capital structure policy;
  13. explain factors an analyst should consider in evaluating the effect of capital structure policy on valuation;
  14. describe international differences in the use of financial leverage, factors that explain these differences, and implications of these differences for investment analysis.
  15. compare theories of dividend policy and explain implications of each for share value given a description of a corporate dividend action;
  16. describe types of information (signals) that dividend initiations, increases, decreases, and omissions may convey;
  17. explain how clientele effects and agency issues may affect a company’s payout policy;
  18. explain factors that affect dividend policy;
  19. calculate and interpret the effective tax rate on a given currency unit of corporate earnings under double taxation, dividend imputation, and split-rate tax systems;
  20. compare stable dividend, constant dividend payout ratio, and residual dividend payout policies, and calculate the dividend under each policy;
  21. explain the choice between paying cash dividends and repurchasing shares;
  22. describe broad trends in corporate dividend policies;
  23. calculate and interpret dividend coverage ratios based on a) net income and b) free cash flow;
  24. identify characteristics of companies that may not be able to sustain their cash dividend.

Teaching Background:

Indian scenario has been considered for explaining concepts through case studies.

Wishing you all the very best to excel in Finance World.

Who is the target audience?
  • CFA Level 2 Students
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Curriculum For This Course
128 Lectures
17:26:10
+
Reading 23: Capital Budgeting
89 Lectures 13:08:54

How to Evaluate Projects
02:09


Cash Flow and After tax principle
04:46

Incremental Principle
05:02

Factors affecting Incremental Cash Flow
10:03

Inflation adj principle
01:58

Long Term Fund Principle
04:34


Case Study NPV
1 page

Case Study NPV
16:24

NPV Case Study on Tax Savings 2
10:19

NPV Case Study on Tax Savings
08:20

Case Study NPV Tax Benefit
1 page

Case Study NPV Tax Benefit
12:14

NPV using Incremental Discount Rate Case Study
18:02

NPV Case Study Opportunity Cost
14:17

Cost Reduction Projects (Introduction)
00:58


Case Study Cost Reduction Projects
1 page

Case Study Cost Reduction Projects
17:18


Case Study Point of View
1 page

Case Study Point of View
23:01

Project and Equity IRR
24:59

Abandonment Decision
06:13

Abandonment Decision
04:20

Replacement Decision (Excel based)
05:21

Replacement Decision
04:38

Aggregate Cash Flow Method (Excel based)
01:18

Incremental Cash Flow Method (Excel based)
07:20

Incremental Cash Flow Method (Hand written)
06:14

Replacement Analysis Case Study 1
18:13

Replacement Analysis Case Study 2
18:17

Replacement Analysis Case Study 3
10:54

Replacement Analysis Case Study 4
11:10

Equated Annual Benefit & Cost
03:52

Equivalent Annual Cost CS
15:28

NPV over Different Life
14:36

Incremental Cash Flow Method
06:14

Limitations of Incremental Cash Flow Method
00:44

Money and Real Cash Flows
05:54

Money Disc Rate and Real Disc Rate
07:35

Inflation and Multiple Cash Flow terms
04:46

Intersection of Money and Real terms with inflation
11:17

Money Cash Flow and Real Cash Flow Case Study 1
03:50

Money Cash Flow and Real Cash Flow Case Study 2
07:56

Money Cash Flow and Real Cash Flow Case Study 3
23:16

Money Cash Flow and Real Cash Flow Case Study 4
14:01

Present Value of Cash Flows from MCF and RCF
04:09

Issues with Inflation Rate 1
10:25

Issues with Inflation Rate 2 and Case Study
13:57

Risk and Uncertainity
07:43

Case Study Risk Uncertainity
02:59

Probability and PD
05:58

Expected Value
02:19

Case study EV
02:15

Standard Deviation
04:04

Steps in Computing Standard Deviation
02:21

Standard Deviation - Simple Case Study
09:24

SD in Decision Making
03:37

Case Stdy SD Decision Making
13:12

Risk Adjusted Discount Rate
09:00

Case Study RADR
06:25

Case Study 2 RADR
14:30

Certainity Equivalent Factor
03:18

Certainity Equivalent Factor Example
09:05

Case Study Certainity Equivalent Factor
08:27

Sensitivity Analysis
07:39

Case Study Sensitivity Analysis
23:12

Comprehensive Case Study on Sensitivity Analysis
30:18

Decision Tree Introduction
01:08

Stages and Rules
02:41

Evaluation rules
02:19

Case Study 1 Decision Tree
17:20

Case Study 2 Decision Tree
13:55

Decision Tree Comprehensive Case Study
36:15

Simulation Introduction
04:04

Simulation eg
07:56

Simulation steps
06:17

Case Study Simulation
21:00

Hilliers Model
09:06

Hillier Case Study part 1
09:29

Hillier Case Study part 2
14:56

Sensitivity and Scenario Analysis in Capital Budgeting - Introduction
02:56

Steps in Scenario Analysis
02:12

Case Study 1 Scenario Analysis
09:23

Case Study 2 Part 1 Scenario Analysis
15:45

Case Study 2 part 2 Scenario Analysis
15:37
+
Reading 24: Capital Structure
20 Lectures 02:19:49
Business Financing Decisions
02:02

Debt Vs Equity Financing Decision
06:25

Good Time and Bad Time for Debt Equity Funding
08:56

Capital Structure
05:21

Capital Structure (Talking Head)
04:43

Capital Structure Mix (Talking Head)
01:48

Factors of Capital Structure Mix (Talking Head)
05:35

Desining Optimal Capital Structure (Talking Head)
05:29

Capital Structure Case Study 1(Talking Head)
19:53

Capital Structure case Study 2 (Talking Head)
21:43

Capital Structure case Study 3 (Talking Head)
15:35

Capital Structuring Case Study 4
07:43

Case Study on Capital Structuring and Tax Shield
04:05

Financial Break Even and Indifference Analysis
01:31

Capital Structure Theories - Net Income Approach
01:56

Capital Structure Theories - Net Operating Income Approach
03:58

Net Income Approach Problem
01:56

Capital Structure Theories - Traditional Approach
03:42

Capital Structure Theories - MM Approach and Arbitrage Case Study
08:41

Case study on Arbitrage
08:47
+
Dividends and Share Repurchases: Analysis
19 Lectures 01:43:27
Introduction to the course and dividend
04:44

Case Study on Basic terms of dividend
04:48

Dividend Dates
03:21

Case Study Dividend Dates
06:54

Strategic benefits of Merger
08:08

Dividends and Market Price
05:09

Different Valuation Models
01:47

Dividend Policy
07:00

Asset based Valuation Model
03:53

Case Study Asset Based Valuation Model
09:38

Common Sense Approach
03:41

Dividend Models
02:13

Walter Model
07:03

Walter Model Case Study
10:08

Lintner model
05:44

Lintner model Case study
02:26

MM Model
04:28

MM Model Formula
12:22

Bonus Lecture - Discount Coupon Link For Other Courses
10 pages
About the Instructor
CA Raja Natarajan, B.Com., PGDBA, FCA
4.1 Average rating
977 Reviews
36,394 Students
82 Courses
Chartered Accountant

I am a Chartered Accountant with tonnes of passion for teaching.

I teach Financial Management & Strategic Financial Management for Chartered Accountancy, Cost and Management Accountancy and Company Secretary students in Ernakulam, India. I also hold Post Graduate Diploma in Business Administration in Finance from Symbiosis, Pune and Bachelors in Commerce, from Loyola College, Chennai.

I worked in State Bank of India as Assistant Vice President - Credit for a period of four years after which i started my Chartered Accountancy Practice. During the stint in State Bank of India, I worked on credit proposals of Mid Corporate Units and gained good experience in Financial Analysis, Risk Assessment, Viability Study, Evaluating business models, Project Finance, Working Capital Management, etc.

I conduct work shops for Entrepreneurs, Chartered Accountancy / Cost and Management Accountancy Students on the topics like Project Finance, Credit Risk Assessment, Entrepreneurship Development, Finance for Non Finance Executives, etc.

I love teaching and i want fundamentals of accounting and finance to reach students and so i am here.