In this course you will learn how companies decide on how much debt to take, and whether to raise capital from markets or from banks. You will also learn how to measure and manage credit risk and how to deal with financial distress. You will discuss the mechanics of dividends and share repurchases, and how to choose the best way to return cash to investors. You will also learn how to use derivatives and liquidity management to offset specific sources of financial risk, including currency risks. Finally, You will learn how companies finance merger and acquisition decisions, including leveraged buyouts, and how to incorporate large changes in leverage in standard valuation models.
This course is part of the Financial Management Specialization
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Financial Management SpecializationUniversity of Illinois at Urbana-ChampaignAbout this Course
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Flexible deadlines
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Shareable Certificate
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100% online
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Course 6 of 7 in the
Approx. 21 hours to complete
English
Subtitles: Chinese (Traditional), Arabic, French, Portuguese (European), Italian, Vietnamese, Korean, German, Russian, English, Spanish
Skills you will gain
- Risk Management
- Corporate Finance
- Mergers And Acquisitions (M&A)
- Debt
Flexible deadlines
Reset deadlines in accordance to your schedule.
Shareable Certificate
Earn a Certificate upon completion
100% online
Start instantly and learn at your own schedule.
Course 6 of 7 in the
Approx. 21 hours to complete
English
Subtitles: Chinese (Traditional), Arabic, French, Portuguese (European), Italian, Vietnamese, Korean, German, Russian, English, Spanish
Offered by
University of Illinois at Urbana-Champaign
The University of Illinois at Urbana-Champaign is a world leader in research, teaching and public engagement, distinguished by the breadth of its programs, broad academic excellence, and internationally renowned faculty and alumni. Illinois serves the world by creating knowledge, preparing students for lives of impact, and finding solutions to critical societal needs.
Start working towards your Master's degree
This course is part of the 100% online Master of Business Administration (iMBA) from University of Illinois at Urbana-Champaign.
If you are admitted to the full program, your courses count towards your degree learning.
Syllabus - What you will learn from this course
2 hours to complete
Course Orientation
You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.
2 hours to complete
3 videos (Total 13 min), 5 readings, 1 quiz
4 hours to complete
Module 1: Raising Financing: The Capital Structure Decision
In Module 1, we will discuss the differences between debt and equity financing for corporations. We will then learn how to avoid usual mistakes that people make when analyzing the choice between debt and equity. We will work with financial statements to understand the impact of higher debt on corporate profits, and we will learn how debt and risk are fundamentally related. Finally, we will use our knowledge to understand how companies choose how much debt to have.
4 hours to complete
12 videos (Total 122 min), 2 readings, 3 quizzes
5 hours to complete
Module 2: Understanding Debt Financing and Payout Policy
In Module 2 we will dig deeper into the mechanics and the institutional details that are important to understand debt financing. We will learn models that allow us to link default probabilities to yields on a company’s debt. We will discuss the roles of credit ratings and credit default swaps for debt markets. We will learn the importance of non-price contractual terms such as debt covenants, collateral and seniority. We will use this knowledge to understand how companies choose between bank debt and bond financing. Finally, we will discuss how payout decisions (dividends and share repurchases) affect firm value and how companies choose their optimal payout policy.
5 hours to complete
12 videos (Total 110 min), 2 readings, 5 quizzes
3 hours to complete
Module 3: Risk Management
In Module 3 we will identify good and bad reasons why companies engage in risk management, or hedging. We will learn the mechanics of how to use derivatives such as forwards and futures to eliminate specific risks. We will also discuss how to manage risks that cannot be hedged with derivatives. In particular, we will learn that appropriate liquidity management can work as a substitute for hedging strategies. We will also discuss how and why to hedge currency risk, and how to think about a company’s cost of capital when making cross-border investments.
3 hours to complete
11 videos (Total 96 min), 2 readings, 3 quizzes
6 hours to complete
Module 4: Financial Management of Acquisitions and R&D
In Module 4, we will apply the financial management tools that we developed in this course to M&A decisions and R&D programs. We will learn how to finance an M&A deal, and how companies choose between cash and stock payments to acquire target companies. We will also discuss the financing of LBOs (leveraged buyouts), and learn how to model a leveraged buyout using Excel. We will then discuss the financial management of R&D programs, with an emphasis on risk management. Specifically, we will learn how to think about the financing of R&D in a dynamic framework that considers the need to make uncertain follow up investments.
6 hours to complete
14 videos (Total 158 min), 2 readings, 5 quizzes
1 hour to complete
Course Conclusion
You will find out where to go next after completing this course and be able to share any thoughts you have on this course experience.
1 hour to complete
2 videos (Total 19 min), 2 readings
Reviews
- 5 stars85.36%
- 4 stars12.59%
- 3 stars0.89%
- 2 stars0.50%
- 1 star0.63%
TOP REVIEWS FROM CORPORATE FINANCE II: FINANCING INVESTMENTS AND MANAGING RISK
by AAJan 10, 2020
Excellent course that gives excellent knowledge and directions to move in the industry. Professor makes materials easy understandable and gives his advice, that can be implemented in the future.
by JLNov 25, 2020
Loved the course! Loved the professor! I even found a citation to one of his papers when reading a paper on M&A means of payment. I'm very happy to have taken this course.
by ROMar 1, 2019
Excellent material to drive and support the discussions introduced in the live sessions. Some materials may need a review (particularly wording), but it does not compromise the overall content at all.
by SCDec 26, 2020
Great course, interesting subjects, and financial insight on strategy and tactics. Real-life exercises analyzed by Heitor Almeida in a very nice way!!!
About the Financial Management Specialization
This Specialization covers the fundamentals of strategic financial management, including financial accounting, investments, and corporate finance. You will learn to evaluate major strategic corporate and investment decisions and to understand capital markets and institutions from a financial perspective, and you will develop an integrated framework for value-based financial management and individual financial decision-making.
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