Corporate Finance – Time Value of Money

This module will begin with a basic overview of financing. The business cycle, how to approach the income statement in accounting, how to approach the balance sheet in accounting, and how to approach the cash flow statement in accounting will all be discussed after that. Then you’ll learn exactly what an income statement is. After that, we’ll look over the balance sheet in detail. This module is a fantastic training for both beginners and intermediate students. We start at the beginning and work our way through financial accounting concepts in a systematic manner. We’ll talk about financing theory because theory and principles are what corporate finance is all about. We need to understand theory so that we may make appropriate changes in the real world. Studying techniques without understanding the theory will make us rigid and unable to adapt to the ever-changing environment. We will comprehend the principle when we apply them to systems. Financial accounting is well-structured in terms of format. In other words, most accounting schools would cover many of the same topics in nearly the same order. Browse for a basic accounting textbook, look through the index, and compare the contents to the courses you’re considering purchasing. We agree that this course will meet the needs of everyone interested in learning about money. We will break down the very huge subjects discussed in manageable portions. We’ll put those pieces together in a method that logically grows on itself, allowing us to develop our knowledge in a systematic, practical, and efficient manner.

Skills You Will Master:

• Cost of Capital – In this section we will see the required return to make a capital budgeting project, such as building a new factory, worthwhile is known as the cost of capital. When analysts and investors talk about the cost of capital, they usually imply the weighted average of a company’s debt and equity costs combined.
• Cost of Preferred Equity – In this topic we will learn the rate of return demanded by preferred stock holders is known as the cost of preferred stock. It’s computed by dividing the annual preferred dividend payout by the current market price of the preferred shares.
• Expected Returns – In this section we will learn the expected return is the profit or loss that an investor can expect from a given investment. An expected return is computed by multiplying various events by their chances of occurring, then adding the results together.
• WACC – In this topic we will see the discount rate used to calculate a company’s Net Present Value (NPV) is the Weighted Average Cost of Capital. It’s also used to assess investment opportunities because it’s thought to represent the company’s opportunity cost.
• Independent Projects – In this section we will learn independent projects is a project that isn’t connected to or reliant on any other project. As a result, the funding of an independent project is not contingent on the funding of another initiative.
• Time Value of Money – In this topic we will see the concept of the temporal value of money (TVM) states that money you have now is worth more than money you will have in the future due to its earning potential.