Overview
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Learn the basics of corporate finance and its impact on decision-making and growth.
Syllabus
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Introduction
- Finance for business decision-making
- The board of directors discusses finance
- Finance inside of companies
- Finance outside of companies
- What is risk and why don't we like it?
- Reducing risk through diversification
- Beta: The concept
- Beta: Examples
- Risk-free rate
- Equity risk premium
- Capital asset pricing model (CAPM)
- Introducing long-term financing
- Does capital structure matter?
- Factors influencing optimal capital structure
- Cost of capital: All debt or all equity financing
- Cost of capital: Split debt-equity financing
- Weighted-average cost of capital
- The difference between a stock and a bond
- Stock markets
- Bond markets
- Publicly traded shares: What impacts the share price?
- Initial public offering (IPO): Microsoft
- Capital budgeting overview
- The importance of the time value of money
- Example: Buying light switches
- Next steps
