About this course: In this course, participants will learn about the key financial decisions modern corporations face, as well as the alternative methods that can be employed to optimize the value of the firm’s assets. This is part of a Specialization in corporate finance created in partnership between the University of Melbourne and Bank of New York Mellon (BNY Mellon).
Who is this class for: Learners who seek to understand the tools and techniques firms use to guide financial decision-making. Key decisions considered in this course include; the investment decision, choosing the optimal financing mix to fund investment, creating value through mergers, acquisitions and corporate restructuring and how risk might be managed to create value for a firm.
Created by: The University of Melbourne
Taught by: Paul Kofman, Dean, Faculty of Business and Economics
Sidney Myer Chair of Commerce
Taught by: Sean Pinder, Associate Professor
Faculty of Business and Economics
| Basic Info | Course 3 of 5 in the Essentials of Corporate Finance Specialization |
| Language | English, Subtitles: Korean |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Syllabus
WEEK 1
Alternative Approaches to Making the Optimal Investment Decision
This week we will define and explain the key approaches to investment evaluation utilized by corporations around the world. We will also consider the way in which sensitivity analysis might be employed so as to provide information to management beyond the simple “invest-don’t-invest” decision.
7 videos, 7 readings, 1 practice quiz
- Reading: Course Syllabus
- Reading: Your Teaching Team
- Reading: Week 1 Outline
- Reading: Start of Course Survey
- Video: 1.0 Welcome and Introduction
- Video: 1.1 Discounted Cash Flow Analysis
- Video: 1.2 Net Present Value Analysis
- Video: 1.3 Internal Rate of Return Analysis
- Video: 1.4 Alternatives to DCF Techniques
- Video: 1.5 Sensitivity Analysis
- Practice Quiz: Week 1 practice quiz - This quiz does not contribute to your final grade
- Reading: Resources
- Reading: Social Media
- Reading: Study Tools and Tips
Graded: Week 1 graded quiz - This quiz contributes 10% towards your final grade
WEEK 2
Raising Capital and the Choices Firms Face
In week 2 we will explain the mechanics behind how firms go to the market via an initial public offering (IPO) to raise new equity capital. We then demonstrate the impact of introducing debt on the returns to shareholders and highlight the different factors that influence debt levels for firms operating in different industries. We conclude by considering how firms make decisions about the optimal level of profits that should be returned to shareholders.
8 videos, 1 reading, 1 practice quiz
- Reading: Week 2 Outline
- Video: 2.1 Raising Equity Capital 1: The IPO Process
- Video: 2.2 Raising Equity Capital 2: IPO Underpricing
- Video: 2.3 Raising Debt Capital 1: Introducing Financial Risk
- Video: 2.4 Raising Debt Capital 2: Explaining Differences in Debt Levels
- Video: 2.5 The Payout Decision
- Practice Quiz: Week 2 practice quiz - This quiz does not contribute to your final grade
- Video: BNY Mid Course Check-in
- Video: Mid Course Check-in with Sean Pinder
Graded: Week 2 graded quiz - This quiz contributes 10% towards your final grade
WEEK 3
Creating Value via Takeovers, Mergers and Corporate Restructuring
During week 3 we will explain how takeovers and mergers occur in practice, define the key terms used in the analysis of markets for corporate control and then develop an understanding of how changes in control might be objectively assessed via financial analysis. In addition to answering the question “how might we create wealth through growth?” we will also consider how value might be created by getting smaller in our review of the impact of corporate restructuring on shareholder wealth.
6 videos, 1 reading, 1 practice quiz
- Reading: Week 3 Outline
- Video: 3.1 The Anatomy of an Acquisition
- Video: 3.2 The Financial Evaluation of a Takeover
- Video: 3.3 Establishing the Economic Rationale for Takeover Activity
- Video: 3.4 Corporate Restructuring via Spinoffs, Divestitures and Equity Carve-outs
- Video: 3.5 Empirical Evidence of the Wealth Impact of Mergers, Acquisitions and Corporate Restructuring
- Practice Quiz: Week 3 practice quiz - This quiz does not contribute to your final grade
Graded: Week 3 graded quiz - This quiz contributes 10% towards your final grade
WEEK 4
Alternative Approaches to Risk Management
In the final week of this course we define and demonstrate the use of different derivative securities in risk management including; forwards, futures and option contracts. We explain the key drivers of option values and explain how options might be combined to provide different payoff structures. We conclude by considering how risk management might create value for shareholders.
6 videos, 4 readings, 1 practice quiz
- Reading: Week 4 Outline
- Video: 4.1 Using Forwards and Futures to Manage Risk
- Video: 4.2 Introducing Options
- Video: 4.3 The Drivers of Option Values
- Video: 4.4 Caps, Floors and Collars
- Video: 4.5 Why Manage Risk?
- Practice Quiz: Week 4 practice quiz - This quiz does not contribute to your final grade
- Reading: Academic Integrity
- Reading: Where To From Here? The Next Step.
- Reading: End of Course Survey
Graded: Week 4 graded quiz - This quiz contributes 10% towards your final grade
Graded: Course Final Exam - This quiz contributes 40% towards your final grade
Graded: Peer Assessment – This contributes 20% towards your final grade
FAQs
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Coursework
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Creators
The University of Melbourne
The University of Melbourne is an internationally recognised research intensive University with a strong tradition of excellence in teaching, research, and community engagement. Established in 1853, it is Australia's second oldest University.
Pricing
| Purchase Course | |
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| Access to course materials | Available |
| Access to graded materials | Available |
| Receive a final grade | Available |
| Earn a shareable Course Certificate | Available |
Ratings and Reviews
The course is structured well to give in depth knowledge about derivatives and the process of mergers and acquisitions, which are the two major topic discussed in the course.
Stellar course and excellent content.
When I first took this course, I was a bit dubious of its content and manner of presentation, but my expectations were exceeded by a huge margin and I'm extremely pleased and happy as now I am a more fully-fledged person when it comes to some of the following aspects:
1- Derivatives including Forwards, Futures, and Options
2- Mergers and Acquisitions (including friendly and hostile ones)
3- Pecking Theory of Capital Structure and Debt Financing
4- Risk Management
5- IPO Process
6- Payoff Decisions
7- DCF analysis and techniques
The end project submission was one of my favourite parts and I spent a huge amount of time studying and reviewing every part of it along with the final 39 questions so that I can deepen my knowledge within those fields.
This course deserves nothing but the full grade and huge thanks to Sean Pinder and Paul Kauffman :)
Great interactive opportunity to get involved in the real world cases based on the concepts delivered in class
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Beautifully designed course, absolutely loved it