CFA Level 1 Corporate Finance

CFA Level 1 – Corporate Finance, available at $44.99, with 160 lectures, and has 7 subscribers.

You will learn about Cost of Capital Cost of Redeemable and Irredeemable Debts Cost of Zero Coupon Bonds using IRR method Cost of Ammortised Bonds using IRR Method Methods to Calculate cost of Equity Gordons Growth Model Capital Asset Pricing Model (CAPM) Cost of Preference Shares Weighted average cost of Capital Marginal Cost of Capital What is Leverage ? Operating Leverage, Financial Leverage and Combined Leverage Break even Analysis- Operating Break even Point and Financial Break even point Margin of Safety and Operating Leverage Financial Leverage – Trading on Equity Financial Leverage – Double edge Sword Capital Budgeting – Meaning and Process Types of Capital Investment decisions Replacement and Modernization decision Expansion Decision Diversification Decision Mutually Exclusive Proposals Decision Accept or Reject Decision Contingent Decision Difference between Accounting Profit and Cashflow Meaning of Incremental Cashflows Depreciation and Tax Benefit on Depreciation Opportunity Cost and Sunk Cost Working Capital Cost Allocated Overhead costs Types of Cashflow for New Projects and Replacement Projects How to Calculate Cashflows Block of Assets and Depreciation Principle Treatment of Financing Costs Post Tax Principles Capital Budgeting Techniques Payback Period Method – Meaning, Illustrations advantages and Disadvantages Payback Period Reciprocal Method Accounting Rate of Return Method (ARR) – Meaning, Illustrations advantages and Disadvantages Discounted Payback Period Method – Meaning, Illustrations advantages and Disadvantages Profitability Index Method (PI) – Meaning, Illustrations advantages and Disadvantages Net Present Value Method (NPV) – Meaning, Illustrations advantages and Disadvantages Internal Rate of Return (IRR) – Meaning, Illustrations advantages and Disadvantages Internal Rate of Return (IRR) and Net Present Value Method (NPV) Reinvestment Assumption Multiple Internal Rate of Return (Multiple IRR) Modified Internal Rate of Return (MIRR) – Meaning, Illustrations advantages and Disadvantages Capital Rationing Divisible and Non- Divisible Projects Methods to analyze Mutually Exclusive Projects with different tenures Replacement Chain Method Equivalent Annualized Criterion Method Meaning ,Significance and Types of Working Capital Optimum Working Capital Approaches for Working Capital Investment Working Capital Cycle or Operating Cycle – Concept and calculation Raw Material Storage Period Work in Progress holding period Finished Goods Storage Period Receivables Collection Period Payables Period Working Capital Estimation Working Capital on Cash cost basis Impact of Double Shift on Working Capital Treasury and Cash Management Cash Budget Accelerating Cash Collections and Controlling Payments Cash Management Models William J Baumol EOQ Model Miller Orr Cash Management Model Management of Marketable securities Inventory Management Basics Reorder Level Reorder Quantity Minimum Stock Level Maximum Stock Level Average Stock Level Danger Level and Buffer Stock Management of Debtors – Meaning and Objective Factors determining Credit Policy Approaches to evaluation of credit policies – Total Approach and Incremental Approach Financing Receivables Factoring Services evaluation Forfaiting Management of Payables and Cost of Payables This course is ideal for individuals who are For those pursuing CFA Level 1 It is particularly useful for For those pursuing CFA Level 1.

Enroll now: CFA Level 1 – Corporate Finance

Summary

Title: CFA Level 1 – Corporate Finance

Price: $44.99

Number of Lectures: 160

Number of Published Lectures: 160

Number of Curriculum Items: 160

Number of Published Curriculum Objects: 160

Original Price: ?1,799

Quality Status: approved

Status: Live

What You Will Learn

Cost of Capital

Cost of Redeemable and Irredeemable Debts

Cost of Zero Coupon Bonds using IRR method

Cost of Ammortised Bonds using IRR Method

Methods to Calculate cost of Equity

Gordons Growth Model

Capital Asset Pricing Model (CAPM)

Cost of Preference Shares

Weighted average cost of Capital

Marginal Cost of Capital

What is Leverage ?

Operating Leverage, Financial Leverage and Combined Leverage

Break even Analysis- Operating Break even Point and Financial Break even point

Margin of Safety and Operating Leverage

Financial Leverage – Trading on Equity

Financial Leverage – Double edge Sword

Capital Budgeting – Meaning and Process

Types of Capital Investment decisions

Replacement and Modernization decision

Expansion Decision

Diversification Decision

Mutually Exclusive Proposals Decision

Accept or Reject Decision

Contingent Decision

Difference between Accounting Profit and Cashflow

Meaning of Incremental Cashflows

Depreciation and Tax Benefit on Depreciation

Opportunity Cost and Sunk Cost

Working Capital Cost

Allocated Overhead costs

Types of Cashflow for New Projects and Replacement Projects

How to Calculate Cashflows

Block of Assets and Depreciation Principle

Treatment of Financing Costs

Post Tax Principles

Capital Budgeting Techniques

Payback Period Method – Meaning, Illustrations advantages and Disadvantages

Payback Period Reciprocal Method

Accounting Rate of Return Method (ARR) – Meaning, Illustrations advantages and Disadvantages

Discounted Payback Period Method – Meaning, Illustrations advantages and Disadvantages

Profitability Index Method (PI) – Meaning, Illustrations advantages and Disadvantages

Net Present Value Method (NPV) – Meaning, Illustrations advantages and Disadvantages

Internal Rate of Return (IRR) – Meaning, Illustrations advantages and Disadvantages

Internal Rate of Return (IRR) and Net Present Value Method (NPV) Reinvestment Assumption

Multiple Internal Rate of Return (Multiple IRR)

Modified Internal Rate of Return (MIRR) – Meaning, Illustrations advantages and Disadvantages

Capital Rationing

Divisible and Non- Divisible Projects

Methods to analyze Mutually Exclusive Projects with different tenures

Replacement Chain Method

Equivalent Annualized Criterion Method

Meaning ,Significance and Types of Working Capital

Optimum Working Capital

Approaches for Working Capital Investment

Working Capital Cycle or Operating Cycle – Concept and calculation

Raw Material Storage Period

Work in Progress holding period

Finished Goods Storage Period

Receivables Collection Period

Payables Period

Working Capital Estimation

Working Capital on Cash cost basis

Impact of Double Shift on Working Capital

Treasury and Cash Management

Cash Budget

Accelerating Cash Collections and Controlling Payments

Cash Management Models

William J Baumol EOQ Model

Miller Orr Cash Management Model

Management of Marketable securities

Inventory Management Basics

Reorder Level

Reorder Quantity

Minimum Stock Level

Maximum Stock Level

Average Stock Level

Danger Level and Buffer Stock

Management of Debtors – Meaning and Objective

Factors determining Credit Policy

Approaches to evaluation of credit policies – Total Approach and Incremental Approach

Financing Receivables

Factoring Services evaluation

Forfaiting

Management of Payables and Cost of Payables

Who Should Attend

For those pursuing CFA Level 1

Target Audiences

For those pursuing CFA Level 1

Hi

This is a Corporate Finance Course for CFA Level 1 Exam. It covers topics related to Corporate Finance in detail. The course consists of video lectures along with solved illustrations and Quiz that provides better understanding of concept. It is logically divided into various Modules and sections. Following are details of the same :

Module 1 : Introduction

(Includes Section 1)

Introduction and understanding the meaning of financial management.

Module 2 : Cost of Capital

(From Section 2 to Section 5 )

Here we will learn how to calculate cost of capital for individual capitals i.e Cost of Debentures/ Bonds, Cost of Preference shares , Cost of Equity shares and then How to calculate total cost of capital.

Cost of debt/Bonds and debentures includes calculation of Cost of Redeemable and Irredeemable debts using approximation method and Internal Rate of Return (IRR) Method. It also includes separate lecture wherein logic for using current price in calculating cost of capital is explained.

Cost of Preference shares using Approximation method and Internal Rate of Return (IRR Method)

Cost of Equity and Retained Earnings using Dividend Price Model, Earnings Approach model, Gordon’s growth model, Realized Yield Approach, Capital Asset Price Model is explained along with examples. Besides Calculation of Growth Rate for Gordon’s growth model, Beta , Types of Risks – Systematic and Unsystematic risks are explained in separate video lecture along with examples.

This section is concluded by calculating weighted average cost of capital (WACC) and Marginal cost of capital.

Module 3 : Leverages

(From Section 6 to Section 9)

Here we will be learning about different types of Leverages – Operational Leverage, Financial Leverage and Combined Leverage. This will be followed by Formula to calculate degree of operating leverage (DOOL/DOL), degree of Financial leverage (DOFL/DFL) and degree of combined leverage (DOCL/DCL). Operating and Financial break even points are analyzed in separate lectures and relationship of break even points with leverage is discussed. Some other topics include relationship between Margin of Safety and Operational leverage, Relationship between Break even point – Fixed cost and operational leverage, Why financial leverage is known as trading on equity and double edge sword.

Module 4 : Capital Budgeting

(From Section  10 to Section 25)

It begins meaning of Capital Budgeting and purpose of Capital Budgeting. This is followed by process of capital budgeting and types of Capital budgeting decisions – Replacement and Modernization decisions, Expansion decisions, Diversification decisions, Mutually Exclusive decisions, Accept or Reject decision, Contingent decision.

Other terms such as incremental cashflows, Tax Benefit on Depreciation, Opportunity cost and Sunk cost, Working capital costs, allocated overhead costs are also explained in separate tutorials along with illustrations. This is followed by types of cashflows for new project and replacement project along with basic principles of calculating cashflows.

All Capital Budgeting Techniques i.e Payback Period Method, Payback Reciprocal Method, Accounting Rate of Return (ARR) Method, Discounted Payback period method, Profitability Index method (PI) , Net Present Value Method (NPV) , Internal Rate of Return Method (IRR) and Modified Internal Rate of Return (MIRR) are discussed in detail along with meaning , Illustrations , advantages and disadvantages. Reinvestment assumptions and anomalies in Net Present Value Method (NPV) and Internal Rate of Return Method (IRR) method along with reasons and examples are discussed separately.

Capital Rationing Meaning and Capital Rationing for Divisible and Indivisible projects is discussed along with solved illustrations.

Methods to analyze Mutually exclusive projects with different tenures – i.e Replacement chain Method and Equivalent annualized criterion method are also included along with solved examples.

Module 5 : Working Capital Management

(From Section 26  to Section 33 )

This module begins with meaning significance and types of working capital.

The other sections includes following topics :

Optimum working capital

Operating Cycle and Working Capital Cycle – Meaning, Concept and Calculation along with comprehensive solved example

Estimation of Working Capital in detail that includes estimation of each and every component of working capital along with solved illustration.

Working Capital on Cash cost basis- Meaning, Concept and Calculation along with comprehensive solved example

Impact of Double Shift on Working Capital – Meaning, Concept and Calculation along with comprehensive solved example

Module 6 : Treasury and Cash Management

(From Section 34 to Section  38    )

It begins with meaning of Cash management along with functions of Treasury and Cash Management. It is followed by preparing of Cash Budgets – Both for long term and Short term along with solved illustrations.

Further it is followed by Cash Management Models and Theories. It includes William J Baumol’s EOQ Model and Miller Orr Cash Management model.

It ends with lectures on recent developments in Cash Management Systems and Management of Marketable securities.

Module 7 : Inventory Management

(Section 39 )

This includes various topics related to Inventory management such as Reorder Level, Reorder Quantity, Minimum stock level, average stock level , Maximum stock level, Danger level and buffer stock along with solved illustration on inventory management.

Module 8 : Management of Receivables and Payables

(From Section 40 to Section 44 )

This module includes following topics :

Management of Debtors – Meaning and Objectives

Credit Policy – Meaning and Factors affecting credit policy

Approaches to evaluation of Credit policies along with the solved illustrations- Evaluation of Credit policies on Total Approach and Evaluation of Credit policies on Incremental Approach.

Financing receivables

Factoring services

Forfaiting

Innovations in receivables management

Monitoring of receivables

Management of Payables

Cost of Payables – Calculation along with solved illustration

Course Curriculum

Chapter 1: Introduction

Lecture 1: Introduction – Basics of Finance Mangement

Chapter 2: Cost of Capital Introduction

Lecture 1: What is Cost of Capital

Chapter 3: Cost of Debts – Bonds and Debentures by Approximation method and IRR Method

Lecture 1: What is Cost of Debts

Lecture 2: How to calculate Cost of Irredeemable debts by Approximation Method

Lecture 3: What is Logic of using Current Market Price in Calculation of Cost of Debts

Lecture 4: How to calculate Cost of Redeemable Debts by Approximation Method

Lecture 5: How to Calculate Cost of Redeemable debts using Yield To Maturity approach

Lecture 6: Calculation -Cost of Zero Coupon bonds by IRR (Internal Rate of Return) method

Lecture 7: Calculation – Cost of Ammortised Bonds by IRR (Internal Rate of Return) method

Lecture 8: Calculation of Cost of Convertible Debt – Approximation and IRR method

Chapter 4: Cost of Shares – Preference Shares and Equity Shares and Retained Earnings

Lecture 1: Cost of Preference shares

Lecture 2: Methods for calculating Cost of Equity

Lecture 3: How to calculate Cost of Equity using Dividend Price Model

Lecture 4: How to Calculate Cost of Equity using Earnings Price Approach

Lecture 5: How to Calculate Cost of Equity – Gordons Growth Model Part 1

Lecture 6: How to Calculate Cost of Equity – Gordons Growth Model Part 2

Lecture 7: How to Calculate Cost of Equity – Gordons Growth Model Part 3

Lecture 8: How to calculate Cost of Equity – Realised Yield Approach

Lecture 9: Calculation of Cost of Equity by Capital Asset Pricing Model (CAPM) – Part 1

Lecture 10: Beta (Capital Asset Pricing Model ) CAPM – Part 2

Lecture 11: Example for Capital Asset Pricing Model (CAPM) – Part 3

Lecture 12: Cost of Retained Earnings

Chapter 5: Weighted Average Cost of Capital and Marginal Cost of Capital

Lecture 1: How to calculate Weighted Average Cost of Capital

Lecture 2: How to Calculate Marginal Cost of Capital

Chapter 6: Leverage Basics

Lecture 1: Leverage Introduction

Chapter 7: All about Operating Leverage

Lecture 1: Operating Leverage Basics

Lecture 2: How to calculate degree of Operating Leverage along with example

Lecture 3: Break even analysis

Lecture 4: Relationship between Break even point ,Fixed cost and operating leverage

Lecture 5: Relationship between Margin of Safety and Operating Leverage

Lecture 6: Operating Leverage – Points to Remember

Chapter 8: All about Financial Leverage

Lecture 1: Financial Leverage – Meaning

Lecture 2: How to Calculate Degree of Financial Leverage

Lecture 3: Financial Leverage – Trading on Equity

Lecture 4: Financial Leverage – Double Edge Sword

Lecture 5: Financial Leverage Points to Remember

Chapter 9: All about Combined Leverage

Lecture 1: Combined Leverage

Lecture 2: Combined Leverage – Points to remember

Chapter 10: Capital Budgeting Basics

Lecture 1: What is Capital Budgeting ?

Lecture 2: Purpose of Capital Budgeting

Lecture 3: Process of Capital Budgeting

Chapter 11: Types of Capital Budgeting Decisions

Lecture 1: Types of Capital Budgeting Decisions Introduction

Lecture 2: Replacement and Modernization Decision

Lecture 3: Expansion Decision

Lecture 4: Diversification Decision

Lecture 5: Mutually Exclusive Decisions

Lecture 6: Accept or Reject Decisions

Lecture 7: Contingent Decisions

Chapter 12: Treatment of various costs for purpose of calculating Cashflows

Lecture 1: Accounting Profit and Cashflow

Lecture 2: Incremental Cashflows

Lecture 3: Depreciation and Tax Benefit

Lecture 4: Opportunity Cost

Lecture 5: Sunk Costs

Lecture 6: Working Capital Costs

Lecture 7: Allocated Overhead Costs

Chapter 13: Types of Cashflows

Lecture 1: Types of Cashflows for New Project

Lecture 2: Types of Cashflows for Replacement Projects

Chapter 14: Principles for Calculating Cashflows

Lecture 1: Basic Principles for calculating cashflows

Lecture 2: Block of Assets and Depreciation Principle

Lecture 3: Exclusion of Financing Cost principle

Lecture 4: Difference in treatment of Depreciation and Interest while calculating Cashflow

Lecture 5: Post Tax Principle

Chapter 15: Capital Budgeting Techniques

Lecture 1: Types of Capital Budgeting Techniques

Chapter 16: Payback Period Technique

Lecture 1: Payback Period Introduction

Lecture 2: Payback period example when cashflow is same

Lecture 3: Payback Period when Cashflow is not same

Lecture 4: Advantages and Limitations of Payback Period

Lecture 5: Payback Reciprocal

Chapter 17: Accounting Rate of Return (ARR)

Lecture 1: Accounting Rate of Return (ARR) Basics

Lecture 2: Accounting Rate of Return (ARR) Example

Lecture 3: Advantages and Limitations of ARR (Accounting Rate of Return)

Chapter 18: Discounted Payback Period

Lecture 1: How to determine a discounting rate

Lecture 2: Discounted Payback Period

Lecture 3: Discounted Payback Period Example

Lecture 4: Advantages and Limitations of Discounted Payback Period

Chapter 19: Profitability Index Method (PI)

Lecture 1: Profitability Index Basics

Lecture 2: Example of Profitability Index

Lecture 3: Profitability Index Advantages and Disadvantages

Chapter 20: Net Present Value Method (NPV Method)

Lecture 1: Net Present Value (NPV) Introduction

Lecture 2: Net Present Value Example

Instructors

Akshata M
Chartered Accountant

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