In this Investment Analysis in Corporate Finance course, you will learn about the discounting of future cash flows and dividend valuation models for pricing stocks. You will also see how metrics such as net present value (NPV) and internal rate of return (IRR) are used to accept or reject a project or investment.

US$52 per 365 days

 

What is the Investment Analysis in Corporate Finance:

A cash flow in the future has a value today, called the present value (PV). The PV is determined by the interest rate and the time elapsed. They are crucial concepts in finance. For example, the price of a security – whether a bond or a stock – is the sum of the present value of all the cash flows expected to be generated by the security in the future. For many securities, such as stocks, cash flows in the form of dividends grow and decline in the future, and valuation models have been designed to account for such changes.

Why it is important:

In this course, you will learn about the discounting of future cash flows and dividend valuation models for pricing stocks. You will also see how metrics such as net present value (NPV) and internal rate of return (IRR) are used to accept or reject a project or investment.

This course will enable you to determine the present value of a series of cash flows from an investment or security using metrics such as NPV and IRR. Particular emphasis is given to the pricing of stocks through valuation models that also allow for the growth of future dividends.

What will you learn:

  1. The Time value of Money
  2. Discounting Cash Flows
  3. Annuities and Perpetuities
  4. Dividend valuation & growth
  5. Gordon Growth Model
  6. Investment decision making

Target audience:

Recruits to banking and financial organizations, corporate bankers, senior managers, sales and marketing executives, operations and support staff, compliance professionals.

Curriculum:

  1. The Time Value of Money
  2. Discounting Cash Flows
  3. Annuities Basics
  4. Perpetuities
  5. Simple Dividend Valuation
  6. Advanced Dividend Valuation
  7. Gordon Growth Model
  8. Dividend Growth
  9. Gordon Growth Model Challenges
  10. Present Value of Growth
  11. Investment Decision-Making Net Present Value (NPV)
  12. Investment Decision-Making Internal Rate of Return (IRR)
  13. Investment Decision-Making Payback Method
  14. Investment Decision-Making Project Betas
  15. Investment Decision-Making Accounting Rate of Return (ARR)
  16. Annuities Present Value

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