Cfa Level 2 Corporate Finance 2019
Tags: Corporate Finance
Master the Corporate Finance syllabus for the CFA Level 2 exam in 2021!
Last updated 2022-01-10 | 4.8
- Capital Budgeting- Capital Structure
- Dividends and Share Repurchases: Analysis
What you'll learn
* Requirements
* You are a CFA Level 2 exam candidate (or have passed the CFA Level 1 exam)* Students will ideally have prior knowledge on time value of money (present value
* discount rates
* NPV
* IRR)
* A financial calculator (I'm using Texas BA II Plus) will be required for the reading on "Capital Budgeting"
Description
IMPORTANT NOTICE FOR THOSE WHO PLANS TO TAKE CFA LEVEL 2 EXAM IN 2022!
We will not be updating this course to the 2022 CFA Level 2 syllabus. Please do not purchase this course if you are taking the CFA Level 2 exam in 2022.
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Prepare for the CFA Level 2 exam in 2021 with 100% confidence! The course covers the Corporate Finance syllabus in detail so you will have a complete understanding when tackling this section in the exam. After you grasp the concepts, try out a lot of questions (from the Learning Ecosystem and End of Chapter questions) to increase your mastery of the readings.
AFTER GOING THROUGH THIS COURSE, YOU DO NOT HAVE TO STUDY FROM THE TEXTBOOK ANYMORE (OR ANY OTHER SOURCE)!
Exam Weight: 5% - 10%
At the end of this course, students should be able to:
evaluate expansion and replacement capital projects, how depreciation methods affect the cash flows of the projects; determine optimal capital project in situations of mutually exclusive projects with unequal lives (least common multiple of lives approach, equivalent annual annuity approach) and capital rationing; types of real options; evaluate capital projects using economic profit, residual income, claims valuation model
explain the Modigliani-Miller propositions (with and without taxes), optimal capital structure
compare theories of dividend policy, describe signals from dividends, clientele effects; compare stable dividend policy, constant dividend payout ratio policy, and residual dividend payout policy; calculate effect of share repurchase on book value per share and earnings per share; calculate dividend coverage ratios
evaluate the effectiveness of a company's corporate governance; evaluate ESG risk exposures and investment opportunities
classify M&A activities based on forms of integration and business activities; bootstrapping of EPS; merger transaction characteristics; pre-offer and post-offer takeover defense mechanisms; use the discounted cash flow, comparable company, and comparable transactions analyses for valuing a target company; evaluate takeover bid
What We Cover in this Course:
Capital Budgeting
Capital Structure
Analysis of Dividends and Share Repurchases
Corporate Governance and Other ESG Considerations in Investment Analysis
Mergers and Acquisitions
What you will get by buying this course is:
detailed coverage of the syllabus, taught by our seasoned instructors of the CFA Program.
support in the Q&A forum (course-related questions) from our instructors.
the confidence to nail this topic in the exam!
Who this course is for:
- Those who are taking the CFA Level 2 Exam in 2020
- Those who wants to learn intermediate level corporate finance knowledge
Course content
6 sections • 86 lectures
Introduction Preview 00:40
Study Notes Preview 00:00
Cash Flow Projections Preview 02:56
Equation Format for Organizing Cash Flows Preview 06:04
Example on Capital Budgeting Cash Flow for a Capital Project Preview 07:34
Try This (Calculate Project NPV) Preview 04:15
Depreciation Methods Preview 04:01
Effects of Inflation on Capital Budgeting Analysis Preview 03:47
Mutually Exclusive Projects with Unequal Lives Preview 01:48
Least Common Multiple of Lives Approach Preview 07:42
Equivalent Annual Annuity (EAA) Approach Preview 02:40
Capital Rationing Preview 04:31
Risk Analysis of Capital Investments: Sensitivity Analysis Preview 03:11
Risk Analysis of Capital Investments: Scenario Analysis Preview 01:24
Risk Analysis of Capital Investments: Monte Carlo Analysis Preview 03:32
Risk Analysis of Capital Investments: Market Risk Methods Preview 02:20
Real Options Preview 02:31
Example on Production-Flexibility Option Preview 01:21
Example on Abandonment Option Preview 06:25
Common Capital Budgeting Pitfalls Preview 05:00
Other Income Measures and Valuation Models: Economic and Accounting Income Preview 09:30
Other Income Measures and Valuation Models: Economic Profit Preview 04:45
Other Income Measures and Valuation Models: Residual Income Preview 03:34
Other Income Measures and Valuation Models: Claims Valuation Preview 04:38
Study Notes Preview 00:00
The Capital Structure Decision Preview 00:41
Modigliani-Miller Proposition I and II (Without Taxes) Preview 07:18
Modigliani-Miller Proposition I and II (With Taxes) Preview 06:30
Costs of Financial Distress Preview 01:42
Agency Costs Preview 01:49
Costs of Asymmetric Information Preview 01:25
The Optimal Capital Structure According to the Static Trade-Off Theory Preview 02:57
Practical Issues in Capital Structure Policy (1) Preview 03:18
Practical Issues in Capital Structure Policy (2) Preview 03:52
Study Notes Preview 00:01
Regular Dividends, Dividend Reinvestment Plans (DRPs) Preview 05:03
Extra Dividends, Liquidating Dividends Preview 01:32
Stock Dividends Preview 06:31
Stock Splits, Reverse Stock Splits Preview 04:57
Dividend Policy and Company Value Preview 03:43
Capital Gains or Dividends: Which Would the Investor Prefer? Preview 06:26
The Information Content on Dividend Actions: Signaling Preview 01:36
Factors Affecting Dividend Policy Preview 03:30
Tax Considerations in Dividend Policy: Double Taxation System Preview 03:15
Tax Considerations in Dividend Policy: Dividend Imputation Tax System Preview 02:44
Tax Considerations in Dividend Policy: Split-rate Tax System Preview 01:57
Dividend Payout Policies: Stable Dividend Policy Preview 02:34
Dividend Payout Policies: Constant Dividend Payout Ratio Policy Preview 01:16
Dividend Payout Policies: Residual Dividend Policy Preview 03:12
Share Repurchases Preview 02:20
Share Repurchase Methods Preview 04:50
Financial Statement Effects of Share Repurchases on EPS Preview 08:18
Financial Statement Effects of Share Repurchases on Changes in BVPS Preview 03:23
The Dividend versus Share Repurchase Decision Preview 04:17
Analysis of Dividend Safety Preview 04:56
Study Notes Preview 00:02
Introduction Preview 01:18
Global Variations in Ownership Structure Preview 00:54
Dispersed vs. Concentrated Ownership Preview 02:25
Conflicts within Different Ownership Structures Preview 05:03
Types of Influential Shareholders Preview 06:58
Effects of Ownership Structure on Corporate Governance Preview 05:04
Evaluating Corporate Governance Policies and Procedures Preview 06:39
Example - Evaluating Corporate Governance Policies and Procedures Preview 01:51
Executive Remuneration Preview 01:06
Shareholder Voting Rights Preview 00:53
Identifying ESG-Related Risks and Opportunities Preview 02:33
Relevant ESG-Related Factors Preview 04:23
Equity vs. Fixed-Income Security Analysis Preview 02:41
Evaluating ESG-Related Risks and Opportunities: ESG Integration Preview 02:05
Green Bonds Preview 03:35
Examples of ESG Integration: Case Study 1 (Environmental Factors) Preview 05:34
Examples of ESG Integration: Case Study 2 (Social Factors) Preview 05:05
Examples of ESG Integration: Case Study 3 (Governance Factors) Preview 03:22
Study Notes Preview 00:00
Mergers and Acquisitions - Part 1 Preview 03:42
Mergers and Acquisitions: Definitions and Classifications
Classifications
Mergers and Acquisitions - Part 2 Preview 09:12
Motives for Merger
Mergers and Acquisitions - Part 3 Preview 01:51
Cross-Border Motivations
Mergers and Acquisitions - Part 4 Preview 06:26
Transaction Characteristics: Form of Acquisition
Transaction Characteristics: Method of Payment
Transaction Characteristics: Mind-Set of Target Management
Mergers and Acquisitions - Part 5 Preview 09:36
Pre-Offer Takeover Defense Mechanisms
Post-Offer Takeover Defense Mechanisms
Mergers and Acquisitions - Part 6 Preview 02:14
Regulation (Antitrust)
Calculating HHI
Mergers and Acquisitions - Part 7 Preview 05:22
Merger Analysis: Target Company Valuation
Discounted Cash Flow Analysis (DCF) analysis
Mergers and Acquisitions - Part 8 Preview 05:50
Merger Analysis: Target Company Valuation
Comparable Company Analysis
Mergers and Acquisitions - Part 9 Preview 04:25
Merger Analysis: Target Company Valuation
Comparable Transaction Analysis
Mergers and Acquisitions - Part 10 Preview 08:33
Merger Analysis: Bid Evaluation
Mergers and Acquisitions - Part 11 Preview 03:39
Should we pay by Cash or Stock?
Characteristics of M&A that Create Value
Corporate Restructuring
Reasons for Restructuring