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If you complete the course successfully, your electronic Course Certificate will be added to your Accomplishments page - from there, you can print your Course Certificate or add it to your LinkedIn profile.

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This course is currently available only to learners who have paid or received financial aid, when available.

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Capital Budgeting Practices

Capital Budgeting Practices

This course is part of Principles of Finance Specialization

Instructor: Pearson

Included with Learn more

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1 module

Gain insight into a topic and learn the fundamentals.

Beginner level

Recommended experience

5 hours to complete

Flexible schedule

Learn at your own pace

1 module

Gain insight into a topic and learn the fundamentals.

Beginner level

Recommended experience

5 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Apply capital budgeting methods to compare projects and make investment decisions using relevant cash flows and project constraints.
Analyze cost behavior, break-even, and leverage impacts to evaluate project risk, profitability, and capital structure choices.

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Build your subject-matter expertise

This course is part of the Principles of Finance Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

Learn new concepts from industry experts
Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
Earn a shareable career certificate

There is 1 module in this course

Master the capital budgeting practices crucial for making sound financial decisions. This course will teach you how to identify and rank profitable projects, calculate their free cash flows, and evaluate investment risk using tools like break-even analysis. You will also explore capital structure theory to make strategic financing decisions for your company. By the end of this course, you will be equipped with the essential tools to evaluate complex investment opportunities and manage your firm's capital structure effectively.

In this course, we delve into capital budgeting practices crucial for financial decision-making. We'll begin by identifying profitable projects and understanding capital-budgeting decision criteria. Topics include capital rationing, ranking mutually exclusive projects, and guidelines for capital budgeting. You'll learn to calculate a project’s free cash flows, evaluate options, and assess risk in investment decisions. We also cover business versus financial risk, break-even analysis, and capital structure theory, equipping you with essential tools for capital structure management.

What's included

1 video2 assignments4 app items4 plugins

1 videoTotal 2 minutes

Capital Budgeting & Cash Flows2 minutes

2 assignmentsTotal 120 minutes

Graded Quiz60 minutes
Practice Quiz60 minutes

4 app itemsTotal 165 minutes

Reading: Capital Budgeting pp. 318-34955 minutes
Reading: Cash Flows pp. 358-38650 minutes
Reading: Financial Risk and Sources of Operating Leverage pp. 398-41125 minutes
Reading: Capital Structure Theory and the Basic Tools of Capital Structure Management pp. 412-43035 minutes

4 pluginsTotal 20 minutes

Interactive: Capital Budgeting Process5 minutes
Interactive: Independent vs. Mutually Exclusive Projects5 minutes
Interactive: Fixed vs. Variable Cost Examples5 minutes
Interactive: Break-Even Analysis5 minutes

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Add this credential to your LinkedIn profile, resume, or CV. Share it on social media and in your performance review.

Instructor

Pearson

8 Courses49 learners

Offered by

Pearson

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Frequently asked questions

Yes, you can preview the first video and view the syllabus before you enroll. You must purchase the course to access content not included in the preview.

If you decide to enroll in the course before the session start date, you will have access to all of the lecture videos and readings for the course. You’ll be able to submit assignments once the session starts.

Once you enroll and your session begins, you will have access to all videos and other resources, including reading items and the course discussion forum. You’ll be able to view and submit practice assessments, and complete required graded assignments to earn a grade and a Course Certificate.