Corporate Investment Management

Learn how to apply various techniques to assess investment projects and value corporates.

Last updated 2022-01-10 | 4.6

- You will learn the rol that financial managers play and the investment trade-offs they need to make.
- You will learn how to use the net present value (NPV) rule to assess whether to invest in a project.
- You will be able to estimate free cash flows (FCFs).

What you'll learn

You will learn the rol that financial managers play and the investment trade-offs they need to make.

You will learn how to use the net present value (NPV) rule to assess whether to invest in a project.

You will be able to estimate free cash flows (FCFs).

You will be able to calculate the weighted average cost of capital (WACC).

You will learn Markowitz' mean-variance portfolio approach

the capital asset pricing model (CAPM)

the arbitrage pricing theory

the Fama and French (1992) three-factor model and the Carhart (1997) four-factor model to estimate beta and the cost of equity

You will learn what agency problems of equity are and how to solve them with.

You will learn what agency problems of debt (overinvestment and underinvestment problem) are and how to solve them.

You will learn investment analysis techniques like the present value index

the profitability index

the accounting rate of return

the internal rate of return

the payback period and the discounted payback period.

You will learn the economic value added (EVA) and market value added approach (MVA)

You will be able to value bonds and the theory of interest rates.

You will be able to estimate / predict interest rates when these are not readily available.

You will learn how to value companies using the comparable companies approach

the dividend discount model

and the discounted cash flow model.

You will learn the major theories on capital structures (i.e. trade-off theory

pecking-order theory

Jensen's FCF theory

and behavioral finance theories)

You will be able to assess the optimal amount of cash to maintain.

You will learn about financial benchmarks like Euribor

Eonia and €ster.

You will learn about private equity and buyout investments.

You will be able to value options using the Black & Scholes valuation model.

You will be able to use binomial models (real options analysis) to assess investment projects.

* Requirements

* Basic mathematics knowledge (although the main concepts are refreshed)
* Basic statistical knowledge (although the main concepts are refreshed)

Description

You will learn the rol that financial managers play and the investment trade-offs they need to make.
You will learn how to use the net present value (NPV) rule to assess whether to invest in a project.
You will be able to estimate free cash flows (FCFs).
You will be able to calculate the weighted average cost of capital (WACC).
You will learn Markowitz' mean-variance portfolio approach, the capital asset pricing model (CAPM), the arbitrage pricing theory, the Fama and French (1992) three-factor model and the Carhart (1997) four-factor model to estimate beta and the cost of equity
You will learn what agency problems of equity are and how to solve them with.
You will learn what agency problems of debt (overinvestment and underinvestment problem) are and how to solve them.
You will learn investment analysis techniques like the present value index, the profitability index, the accounting rate of return, the internal rate of return, the payback period and the discounted payback period.
You will learn the economic value added (EVA) and market value added approach (MVA)
You will be able to value bonds and the theory of interest rates.
You will be able to estimate / predict interest rates when these are not readily available.
You will learn how to value companies using the comparable companies approach, the dividend discount model, and the discounted cash flow model.
You will learn the major theories on capital structures (i.e. trade-off theory, pecking-order theory, Jensen's FCF theory, and behavioral finance theories)
You will be able to assess the optimal amount of cash to maintain.
You will learn about financial benchmarks like Euribor, Eonia and €ster.
You will learn about private equity and buyout investments.
You will be able to value options using the Black & Scholes valuation model.
You will be able to use binomial models (real options analysis) to assess investment projects.

Course content

12 sections • 168 lectures

Introduction and course outline 7 lectures

Welcome Preview 00:36

Welcome Preview 03:19

Coursebooks Preview 00:58

Difference between the USA and Europe Preview 03:22

Often technical material, but not always Preview 01:48

Course outline Preview 11:21

Quiz

As the first chapter was only an introduction and an overview of the course, this quiz is merely to get you familiar with the Udemy platform. A few (easy) questions will follow. Good luck !