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Introduction to Business Valuation (CFI)

https://corporatefinanceinstitute.com/course/intro-business-valuation/ https://www.credential.net/6424b711-a689-4088-b6f7-4e389cedff20 The examples and spreadsheets included in the course are super useful! All also available here: https://learn.corporatefinanceinstitute.com/resources/templates/ General Corporate Finance Asset valuation technique (based on replacement cost, liquidation value) isn’t used much so not in this course Enterprise value (assets) = equity value (market cap = shares * price) + net debt (debt - cash) Capital structure = debt to equity ratio Payment order: vendors/employees (COGS) → debt holders (interest) → government (tax) → shareholders (net earnings)

Wednesday, August 16, 2023 | 4 minutes Read
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Corporate Finance Fundamentals (CFI)

https://corporatefinanceinstitute.com/course/corporate-finance-fundamentals/ https://www.credential.net/78615569 Introduction Primary market Buy side: institutions/investments Sell side: investment banks Corporations: exchange bonds/shares for capital Secondary market Fund managers buy/sell at stock exchange through investment banks Capital Investment Creates economic benefit greater than one year Increase assets Calculations NPV = FV/(1+r)^n Note: Excel =NPV is different from manual calculation → “Excel NPV formula assumes that the first time period is 1 and not 0. So, if your first cash flow occurs at the beginning of the first period (i.e. 0 period), the first value must be added to the NPV result, not included in the values arguments (or use XNPV).”

Wednesday, August 9, 2023 | 3 minutes Read
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Introduction to Corporate Finance (Columbia Business School)

Introduction to Corporate Finance https://learning.edx.org/course/course-v1:ColumbiaX+CORPFIN1x+1T2023/home Basic Finance Concepts Rate of Return Rate,of,returnannual=Return−initial,investmentInitial,investment=GainInitial,investmentRate,of,return_{annual}=\frac{Return - initial,investment}{Initial,investment}=\frac{Gain}{Initial,investment} Ex: Invest £100k, return £50k Rate,of,returnannual=50−100100=−50Rate,of,return_{annual}=\frac{50-100}{100}=-50% Future Value Future,value=Present,value×(1+rate,of,return)Future,value=Present,value\times(1+rate,of,return) Compounding Future Value FVt,years=PV×(1+r)tFV_{t,years}=PV\times(1+r)^t Ex: Invest £100k, RoR = 10% FV2=£100k×(1+0.10)2=£121kFV_2=£100k\times(1+0.10)^2=£121k Present Value PV=FV(1+r)tPV=\frac{FV}{(1+r)^t} Ex: £150k return in 2 years at 10% RoR PV=£150k(1+0.10)2=£124kPV=\frac{£150k}{(1+0.10)^2}=£124k Opportunity cost of capital = alternative investment RoR PV=C1(1+r)1+C2(1+r)2+C3(1+r)3+…PV=\frac{C_1}{(1+r)^1}+\frac{C_2}{(1+r)^2}+\frac{C_3}{(1+r)^3}+… Ex: Return of £110 in 1 year, £121 in 2 years, cost of capital = 10%

Wednesday, July 19, 2023 | 6 minutes Read
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Corporate Strategy (UCL/UoL)

https://www.coursera.org/learn/corporatestrategy Introduction Corporation = multiple businesses Businesses differentiated by who, what, how (customer, product, place) Corporate strategy = portfolio selection + portfolio organisation Ownership Ownership matrix: Parent vs business, public vs private Shares ≠ votes. Example: Family owns 80% of parent, which owns 40% of business (but 60% of voting rights). Family have 32% of shares and 48% of votes. But as family has 80% of parent (majority), they can control all 60% of voting rights.

Wednesday, June 21, 2023 | 11 minutes Read