Corporate Finance and Alternative Investment for CFA L1
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Corporate Finance and Alternative Investment for CFA L1

This course covers two important topic areas of CFA L1 exam, which are Corporate Finance and Alternative Investments
4.7 (3 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.
91 students enrolled
Created by Tanuja Yadav
Last updated 4/2016
English
Current price: $10 Original price: $20 Discount: 50% off
1 day left at this price!
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Includes:
  • 4.5 hours on-demand video
  • 2 Supplemental Resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
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What Will I Learn?
Understand Corporate Finance well
Understand Alternate Investments well
Be perpared for about 11% of the CFA L1 course in less than 10 days! spending about 30 minutes watching these lectures every day
View Curriculum
Requirements
  • The topics of CFA are interconnected, therefore, a student should have a basic understanding of the prior topic areas such as Equity, fixed Income, Eco etc in order to fully appreciate the correlation
Description

The study session on Corporate Finance covers the principles that corporations use to make their investing and financing decisions.

The first reading covers capital budgeting. Capital budgeting is the process of making decisions about which long-term projects the corporation should accept for investment and which it should reject. Both the expected and required rates of return for a project should be taken into account.

The second reading explains how the required rate of return for a project is developed using economically sound methods.

The third reading discusses measures of leverage and how they affect a company's earnings and financial ratios. In managing or evaluating the riskiness of earnings, analysts and corporate managers need to evaluate operating leverage (the use of fixed costs in operations) and financial leverage (the use of debt in financing operations).

The fourth reading deals with important features of the alternative means of distributing earnings, dividends and share repurchases.

The fifth reading discusses short-term liquidity and working capital management.

The final reading in this study session is on corporate governance practices. Inadequate corporate governance can expose a company to negative effects, including damage to reputation and loss of business and market value.

With Corporate Finance done, the student will be prepared for 7% of the CFA L1 course in the shortest possible time, I am extending this delightful experience further by providing the study session for Alternate Investments free with this course so that an additional 4% of the course prep is completed!

Who is the target audience?
  • Students enrolled for CFA L1 for the first time
  • Students who would be taking a second attempt on CFA L1 in December and had received a feedback for improvement for these subjects
  • Students of MBA finance who are looking forward to an in-depth understanding of Corporate finance and Alternate Investments
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Curriculum For This Course
Expand All 27 Lectures Collapse All 27 Lectures 04:32:40
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Corporate Finance: Reading 35 Capital Budgeting
3 Lectures 36:30

This lecture introduces the faculty and the utility of the course

Preview 03:12

At the end of this lecture, the student should be able to: describe the capital budgeting process and distinguish among the various categories of capital projects; describe the basic principles of capital budgeting; and explain how the evaluation and selection of capital projects is affected by mutually exclusive projects, project sequencing, and capital rationing;

Preview 13:47

At the end of this lecture, the student should be able to:

  • calculate and interpret net present value (NPV), internal rate of return (IRR), payback period, discounted payback period, and profitability index (PI) of a single capital project;
  • explain the NPV profile, compare the NPV and IRR methods when evaluating independent and mutually exclusive projects, and describe the problems associated with each of the evaluation methods;
  • describe expected relations among an investment's NPV, company value, and share price.
Capital Budgeting Criterion
19:31
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Corporate Finance: READING 36 COST OF CAPITAL
6 Lectures 54:22

At the end of this lecture. the student should be able to:

  • calculate and interpret the weighted average cost of capital (WACC) of a company;
  • describe how taxes affect the cost of capital from different capital sources;
Cost of Capital_Intro and effect of Taxes
08:54

At the end of this lecture, the student should be able to:

  • describe the use of target capital structure in estimating WACC and how target capital structure weights may be determined;
  • explain how the marginal cost of capital and the investment opportunity schedule are used to determine the optimal capital budget;
  • explain the marginal cost of capital's role in determining the net present value of a project;
Target Capital Structure, Marginal Cost of Capital
06:16

At the end of this lecture, the student should be able to:

  • calculate and interpret the cost of debt capital using the yield-to-maturity approach and the debt-rating approach;
  • calculate and interpret the cost of non callable, nonconvertible preferred stock;
Cost of debt capital and prefered stocks
06:59

At the end of this lecture, the student should be able to:

  • calculate and interpret the cost of equity capital using the capital asset pricing model approach, the dividend discount model approach, and the bond-yield plus risk-premium approach;
  • calculate and interpret the beta and cost of capital for a project;
  • describe uses of country risk premiums in estimating the cost of equity;
CAPM cost of equity, DDM and other models
11:36

At the end of this lecture, the student should be able to:

  • describe the marginal cost of capital schedule, explain why it may be upward sloping with respect to additional capital, and calculate and interpret its break-points;
  • explain and demonstrate the correct treatment of flotation costs.
Cost of Capital estimation
14:21

Marginal cost of Capital Structure
06:16
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Measures of Leverage
2 Lectures 27:35

At the end of this reading, the student should be able to:

  • define and explain leverage, business risk, sales risk, operating risk, and financial risk and classify a risk;
  • calculate and interpret the degree of operating leverage, the degree of financial leverage, and the degree of total leverage;
Measures of Leverage
16:03

At the end of this reading, the student should be able to:

  • analyze the effect of financial leverage on a company's net income and return on equity;
  • calculate the break-even quantity of sales and determine the company's net income at various sales levels;
  • calculate and interpret the operating break-even quantity of sales.
Impact of Leverage
11:32
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Dividends and Share Repurchases: Basics
2 Lectures 28:10

At the end of this lecture, the student should be able to:

  • describe regular cash dividends, extra dividends, liquidating dividends, stock dividends, stock splits, and reverse stock splits, including their expected effect on shareholders' wealth and a company's financial ratios;
Dividends and Share Splits
15:08

At the end of this lecture, the student should be able to:

  • describe dividend payment chronology, including the significance of declaration, holder-of-record, ex-dividend, and payment dates;
  • compare share repurchase methods;
  • calculate and compare the effect of a share repurchase on earnings per share when 1) the repurchase is financed with the company's excess cash and 2) the company uses debt to finance the repurchase;
  • calculate the effect of a share repurchase on book value per share;
  • explain why a cash dividend and a share repurchase of the same amount are equivalent in terms of the effect on shareholders' wealth, all else being equal.
Dividend payment chronology
13:02
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Working Capital Management
7 Lectures 01:04:38

At the end of this lecture, the student should be able to describe primary and secondary sources of liquidity and factors that influence a company's liquidity position;

Sources of Liquidity
03:09

At the end of this lecture, the student should be able to compare a company's liquidity measures with those of peer companies;

Liquidity Measures
13:20

At the end of this lecture, the student should be able to evaluate working capital effectiveness of a company based on its operating and cash conversion cycles and compare the company's effectiveness with that of peer companies; and describe how different types of cash flows affect a company's net daily cash position;

Short Term Cash Management _Working Capital Effectiveness
11:28

At the end of this lecture, the student should be able to calculate and interpret comparable yields on various securities, compare portfolio returns against a standard benchmark, and evaluate a company's short-term investment policy guidelines;

Investment Risks, Strategies and Tools
03:54

At the end of this lecture, the student should be able to evaluate a company's management of accounts receivable over time and compared to peer companies; and evaluate the choices of short-term funding available to a company and recommend a financing method

Receivables Management
10:25

At the end of this lecture, the student should be able to evaluate a company's management of inventory over time and compared to peer companies; and evaluate the choices of short-term funding available to a company and recommend a financing method

Inventory management
06:42

At the end of this lecture, the student should be able to evaluate a company's management of accounts payable over time and compared to peer companies; and evaluate the choices of short-term funding available to a company and recommend a financing method

Payable Management
15:40
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Corporate Governance
4 Lectures 38:56

At the end of this lecture, the student should be able to:

  • define corporate governance;
  • describe practices related to board and committee independence, experience, compensation, external consultants, and frequency of elections and determine whether they are supportive of shareowner protection;
Introduction to Corporate Governance
04:02

At the end of this lecture, the student should be able to:

  • describe board independence and explain the importance of independent board members in corporate governance;
  • identify factors that an analyst should consider when evaluating the qualifications of board members;
board independence
12:25

At the end of this lecture, the student should be able to:

  • describe responsibilities of the audit, compensation, and nominations committees and identify factors an investor should consider when evaluating the quality of each committee;
  • describe provisions that should be included in a strong corporate code of ethics;
Audit and code of ethics
14:20

At the end of this lecture, the student should be able to evaluate, from a shareowner's perspective, company policies related to voting rules, shareowner sponsored proposals, common stock classes, and takeover defenses.

Code of Ethics Part 2
08:09
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Alternative Investments
3 Lectures 22:29

At the end of this lecture, the student should be able to: compare alternative investments with traditional investments, describe categories of alternative investments and describe potential benefits of alternative investments in the context of portfolio management;

Alternative investments Part 1
14:05

At the end of this lecture, the student should be able to: describe hedge funds, private equity, real estate, commodities, infrastructure, and other alternative investments, including, as applicable, strategies, subcategories, potential benefits and risks, fee structures, and due diligence; describe, calculate, and interpret management and incentive fees and net-offees returns to hedge funds; describe issues in valuing and calculating returns on hedge funds, private equity, real estate, commodities, and infrastructure; and describe risk management of alternative investments.

Alternative Investments Part 2
07:44

Please attempt quiz after going through all lectures

Final Quiz
10 questions

Try and answer the question with 85% accuracy in less than 15 minutes

Practice Quiz 1
10 questions

Bonus Lecture: Coupon codes and Access to free courses
00:40
About the Instructor
Tanuja Yadav
4.1 Average rating
311 Reviews
10,712 Students
17 Courses
Chartered Financial Analyst

A CFA charter holder, I have extensive experience in the field of F&A outsourcing and have worked on various projects within the F&A Arena. I have 11 years of experience in F&A delivery, handling end to end finance and accounting processes, F&A practice and process improvement. I am also a visiting faculty with International College of Financial Planning, New Delhi where I have taken classes for CFA L 2 and 3. I have my own channel on Youtube on Finance and Investments.

Specialties: Finance, Fixed Income, Treasury, Accounts Payable, Accounts Receivables, Reconciliation, Fixed Asset and Project accounting, Solution development, F&A Training, SOX testing, Fraud risk assessment and Process streamlining.