15 Credits: Finance
Even an organization with excellent products and processes cannot survive without proper attention to its finances. This is because finance represents the flow of money through an organization—without money, no activities can last for long, and the business will fail. Corporate Finance addresses the practical aspects of fundraising and the deployment of cash.
By implementing the concepts in this course, you can improve an organization’s ability to raise funds at a reasonable price, while driving down the amount of working capital requirements and directing funds into those activities that will be best able to generate cash. You’ll gain an understanding of how to develop an appropriate capital structure and determine the best types of debt and equity funding. Additional tools are provided for calculating the cost of capital and constructing cash flows to analyze potential cash uses. Full coverage of risk management, supply chain management, and the use of measurements most applicable to corporate finance is also included.
Upon successful completion of this section of this course, participants will be able to:
- Identify the players involved in the practice of corporate finance, the different roles that they play, and services that are routinely provided.
- Recognize the components of capital structure, identifying key terms, common characteristics, and situations that may call for its revision.
- Cite an example of a tax shield and a common loan covenant.
- Identify key elements of a debt maturity structure, noting which businesses should be concerned with this issue.
- Identify the methods used to construct financial plans, noting key characteristics, terms, and measurements associated with each method.
- Recognize the methods available for obtaining early-stage funding, noting the characteristics and structure of each.
- Cite possible negative aspects associated with venture capital.
- Specify reasons for and against an initial public offering.
- Identify the steps to prepare and undergo an initial public offering.
- Cite public auditor registration requirements and the restrictions placed on a business during an initial public offering.
- Identify the different techniques available for selling shares outside of an initial public offering, citing key features, filing requirements, advantages, and restrictions associated with their use.
- Recognize terms associated with different types of debt financing, citing their characteristics and components.
- Recognize the concept behind leasing, including the elements analyzed in a lease versus buy decision.
- Cite advantages and disadvantages of lease financing.
- Identify the formula components for cost of capital measurements.
- Identify key characteristics associated with cost of capital and its derivations, noting variations, adjustments, and threshold value.
- Determine the cost of capital given a set of circumstances.
- Identify the different discounted cash flow concepts, noting their defining characteristics and how they are used.
- Recognize the impact of working capital on corporate finance, identifying the techniques used to control the amount of funds invested in working capital.
- Recognize the alternatives available for determining the worthiness of proposed capital expenditures, identifying key components, characteristics, usage, and outcomes.
- Identify the different investment strategies, noting their key characteristics.
- Identify different types of investments, citing the characteristics of the more common financial instruments.
- Recognize the defining characteristics of primary and secondary markets, effective interest rates, and the discounted investment formula.
- Identify the components in a dividend payout formula, the implications of a high ratio, and the impact on investors when dividends are first issued.
- Identify the different types of acquisition strategies, citing key elements, requirements, and usage for each type.
- Recognize the various methods that can be used to assess the valuation of a target company, identifying key components and proper usage.
- Recognize the implications of making different types of payment offers to the owners of an acquisition target.
- Recognize terms associates with foreign exchange risk, identifying hedging techniques used to mitigate foreign exchange risk.
- Identify types of foreign exchange hedges, noting their defining characteristics and proper usage.
- Cite the hedging techniques used to mitigate interest rate risk.
- Identify various types of interest rate hedges, noting the requirements for each type.
- Identify the elements of supply chain financing, noting conditions under which this type of financing is most likely to be accepted by suppliers.
- Recognize the financial metrics ratios used to measure the ability to pay, noting the contents of the ratio formulas and what the metrics indicate.
- Specify instances in which ratios can give misleading results.
February 3, 2023
There are no prerequisites.
CMA Notice: Western CPE makes every attempt to maintain our CMA CPE library, to ensure a course meets your continuing education requirements please visit Insitute of Management Accountants (IMA)
CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.
Meet The Experts
Steven M. Bragg, CPA, is a full-time book and course author who has written more than 250 business books and courses. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast. Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and …