Self-Study
23
Intermediate
Finance
Basic math and statistics.

Course Description

This course is designed for accountants who must have financial knowledge but have not had formal training in finance. Topics include: the Sarbanes-Oxley Act financial reporting requirements, uses and analysis of financial statements, financial forecasting and cash budgeting, risk and return, valuation of stocks and bonds, time value of money, investing and financing, leverage, optimal capital structure, portfolio selection, management of financial resources, and international finance. This course will help you understand the fundamentals of financial decision making and strategy that can be applied in the day-to-day jobs of accountants and managers. Examples and illustrations emphasize the practical application of financial concepts, tools, and methodology.



Instructor

Delta Publishing

For many years, Delta Publishing has offered a wide variety of continuing education courses for financial professionals. Topics covered by Delta’s courses include accounting, financial management, budgeting, investments, financial statement reporting, business management, IFRS, ethics, valuations, real estate, and business writing. The diversity and breadth of Delta’s course offerings make the company a prolific and unique contributor to the CPE world. Delta’s well-credentialed authors and contributors have also been published in numerous academic and professional journals and quoted by some of the leading financial media outlets.



Course Specifics

Finance
Nov 27, 2017
Basic math and statistics.
SS3130193
393
None


Compliance Information

103220
Qualifies for CA Fraud: No


Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Discuss managerial finance objectives, distinguish between profit maximization and stockholder wealth maximization, and explain how agency problems may interfere with the goal of stockholder wealth maximization
  • Describe the scope and role of finance, key finance terms, and the relationship between accounting and finance
  • Explain the role of financial managers, and the financial and operating environment in which they operate
  • Compare the various legal forms of business organization

Chapter 2

  • Read and interpret basic financial statements, including how the balance sheet portrays a company's financial position, and how the income statement reveals the entity's operating performance
  • Outline the many types of accounts that may exist in the accounting system and determine/assess a company's cash inflows and cash outflows
  • Explain what the annual report is and read and list its components, including the financial statements, footnotes, review of operations, auditor's report, and supplementary schedules
  • Describe what management's discussion and analysis (MD&A) involves
  • Summarize how the Sarbanes-Oxley 404 reporting differs from traditional reporting

Chapter 3

  • Explain what financial statement analysis is and why it is important
  • Compare horizontal analysis and vertical analysis
  • List and discuss the basic components of ratio analysis including limitations
  • Distinguish between trend analysis and industry comparison
  • Calculate a comprehensive set of financial ratios and interpret them

Chapter 4

  • Discuss ROI, identifying the basic components of the Du Pont formula and explaining how it can be used for profit improvement
  • Analyze how financial leverage affects the stockholder's return

Chapter 5

  • Apply the percent-of-sales method to determine the amount of external financing needed
  • Diagram the firm's budgetary system, including the cash budget and the forecasted (pro forma) income statement and balance sheet
  • Calculate a firm's sustainable rate of growth
  • Formulate the master budget, step by step
  • Discuss why budgeting is used for profit planning and 'what-if' analysis

Chapter 6

  • Outline the concept of future value, with both annual and intrayear compounding
  • Distinguish between future value and present value concepts
  • Calculate the future value of a single payment and an annuity, and the present value of a single payment and an annuity
  • Compare and contrast future value and present value tables
  • Determine important financial variables such as a sinking fund amount, the monthly payment of an amortized loan, and annual percentage rate (APR)

Chapter 7

  • Define return, describe how it is measured, and distinguish between arithmetic return and geometric return
  • Calculate and state risk statistics: the variance, standard deviation, and coefficient of variation
  • Identify the types of risk
  • Explain the nature of diversification and how it reduces risk
  • Calculate portfolio return and portfolio risk
  • Compare the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Model (APM)
  • Calculate a beta value and describe its use in designing a portfolio

Chapter 8

  • Outline the key inputs and concepts underlying the security valuation process
  • Determine the value of bonds, identify and calculate various yields on a bond, and distinguish between preferred stock and common stock
  • Describe the various methods of common stock valuation, and determine the investor's expected rate of return on preferred stock and common stock

Chapter 9

  • Compute individual costs of financing including long-term debt, bonds, preferred stock, common stock, and retained earnings
  • Determine the overall cost of capital
  • Discuss the various weighting schemes, and explain how the weighted marginal cost of capital can be used with the investment opportunity schedule to find the optimal capital budget

Chapter 10

  • Describe the types and special features of capital budgeting decisions
  • Calculate, interpret, and evaluate five capital budgeting techniques
  • Select the best mix of projects with a limited capital spending budget
  • Discuss how income tax factors affect investment decisions
  • Explain the types of depreciation methods
  • Discuss the effect of Modified Accelerated Cost Recovery System (MACRS) on capital budgeting decisions

Chapter 11

  • Discuss the basics of break-even analysis and operating leverage and how they relate to each other
  • Measure operating leverage and financial leverage and distinguish between them
  • Apply the EBIT-EPS approach to evaluate alternative financing plans
  • Explain how to determine the best capital structure

Chapter 12

  • Accelerate cash receipts, delay cash payments, and determine an optimal cash balance
  • Identify the types of marketable securities
  • Explain how to manage accounts receivable
  • Describe what credit and discount policies may be advisable
  • Outline ways to manage inventory, compute the carrying cost and ordering cost of inventory, and determine how much inventory to order and when to order

Chapter 13

  • Explain the different short term financing instruments and when each one is most appropriate
  • List the advantages of trade credit
  • Identify the types of bank loans and how they work
  • Compute interest
  • Outline the attributes of commercial paper financing
  • Finance using receivables and inventory as collateral
  • Distinguish between short term and long term financing
  • List the advantages and disadvantages of leasing

Chapter 14

  • Identify the types of bonds that can be issued
  • Outline the advantages of using bonds for long term financing
  • Discuss how bond interest is calculated and paid
  • Decide if a bond issue should be refunded before maturity

Chapter 15

  • Outline the advantages and disadvantages of the different kinds of stock and other equity securities
  • List the characteristics of the different classes of stock
  • Describe the role of the investment banker
  • Explain the importance of making wise capital structure decisions
  • Distinguish difference between a private and public placement of securities

Chapter 16

  • Outline the key features of the financial management of a multinational corporation (MNC) and describe popular financial goals of MNCs
  • Distinguish between spot and forward foreign exchange rate
  • Explain ways to control currency risk
  • Outline three different types of foreign exchange exposure
  • Explain long versus short position
  • List some key questions to ask that help to identify foreign exchange risk
  • Identify the ways to forecast foreign exchange rates
  • Analyze foreign investments
  • Measure political risk and deal with political risk
  • Identify various international sources of financing


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