CFA Corporate Finance Level 1 (Part 1)

Learn Capital Budgeting, Cost of Capital and Measures of Leverage in this part course meant for CFA

Take this Course for $21
Welcome to Corporate Finance CFA Level 1 (Part 1) Course.
As the name indicates, this course covers part of syllabus of Corporate Finance Paper of Level 1 of CFA Exams.
About Coverage:
Section 1 will cover Reading 36 - Capital Budgeting
Section 2 will cover Reading 37 - Cost of Capital
Section 3 will cover Reading 38 - Measures of Leverage.
Teaching and Learning Style:
This course is structured in self paced learning style. It is suggested to take screenshots of case studies for reference back during problem solving. Approaching the course with note book and pen or MS Excel and solving problems paralelly along with instructor will make you feel like attending real class and improve your listening and learning experience.
Teaching and Learning outcomes:
By taking this course, you will be able to

  1. describe the capital budgeting process and distinguish among the various categories of capital projects;
  2. describe the basic principles of capital budgeting;
  3. explain how the evaluation and selection of capital projects is affected by mutually exclusive projects, project sequencing, and capital rationing;
  4. calculate and interpret net present value (NPV), internal rate of return (IRR), payback period, discounted payback period, and profitability index (PI) of a single capital project;
  5. explain the NPV profile, compare the NPV and IRR methods when evaluating independent and mutually exclusive projects, and describe the problems associated with each of the evaluation methods;
  6. describe expected relations among an investment’s NPV, company value, and
    share price.
  7. calculate and interpret the weighted average cost of capital (WACC) of a company;
  8. describe how taxes affect the cost of capital from different capital sources;
  9. describe the use of target capital structure in estimating WACC and how target capital structure weights may be determined
  10. explain how the marginal cost of capital and the investment opportunity schedule are used to determine the optimal capital budget;
  11. explain the marginal cost of capital’s role in determining the net present value of a project;
  12. calculate and interpret the cost of debt capital using the yield-to-maturity approach and the debt-rating approach;
  13. calculate and interpret the cost of noncallable, nonconvertible preferred stock;
  14. calculate and interpret the cost of equity capital using the capital asset pricing model approach, the dividend discount model approach, and the bond-yieldplus risk-premium approach;
  15. calculate and interpret the beta and cost of capital for a project;
  16. describe uses of country risk premiums in estimating the cost of equity;
  17. describe the marginal cost of capital schedule, explain why it may be upwardsloping with respect to additional capital, and calculate and interpret its break-points;
  18. explain and demonstrate the correct treatment of flotation costs.
  19. define and explain leverage, business risk, sales risk, operating risk, and financial
    risk and classify a risk;
  20. calculate and interpret the degree of operating leverage, the degree of financial leverage, and the degree of total leverage;
  21. analyze the effect of financial leverage on a company’s net income and return on equity;
  22. calculate the breakeven quantity of sales and determine the company’s net income at various sales levels;
  23. calculate and interpret the operating breakeven quantity of sales.
Teaching Background:
Indian scenario has been considered for explaining concepts through case studies.
Video Lectures status:
Of the above content, around 70% lectures have been added as on 01st September 2016 and balance will be added in due course.
Wishing you all the very best to excel in Finance World.

Course Curriculum

Capital Budgeting Process
Types of Capital Investment Decisions
Project Cash Flows
Principles for Measuirng Project Cash Flows
Measuring cash flows Case Study 1
Measuring Cash Flows Case Study 2
Cashflow computation Case Study 3
Cash Flow Perspective Case Study 4
Capital Budgeting Techniques
Capital Budgeting Tools (Taking Head)
Payback period (Talking Head)
Pay Back Period Introduction
Pay Back Period Example
PayBack Period Case Study 1 - Taking Head
PayBack Period Case Study 2 - Taking Head
PayBack Period Case Study 3
Payback Reciprocal
Accounting Rate of Return
Discounted Pay Back Period Method
NPV
NPV Technique
Advantages and Disadvantages of NPV
NPV Case Study 1
NPV Case Study 2
NPV Case Study 3
NPV Case Study 4
NPV of Different Projects Case Study 5
NPV Incremental Discount Rate Case Study 6
NPV Case Study 7
NPV & Tax Savings Case Study 8
NPV & Tax Savings Case Study 9
NPV based on Opportunity Cost Case Study 10
Abandonment Decision in Replacement Case Study 13
Equivalent Annual Cost Case Study 14
Replacement Decision
Aggregate Cash Flow Method in Replacement
Incremental Cash Flow Method in Replacement
Replacement Analysis Case Study 1
Replacement Analysis Case Study 2
Replacement Analysis Case Study 3
Replacement Analysis Case Study 4
Profitability Index
Profitability Index Case Study 1
Profitability Index Case Study 2
Problem NPV and Capital Rationing PI Case Study 3
IRR Introduction
Advantages and Disadvantages of IRR
IRR Simple Case Study 1
IRR Case Study 2
IRR Case Study 3
IRR Case Study 4
Modified IRR
IRR ARR NPV and Ranking Case Study 5
IRR Discounted Pay Back Period Profitability Inded and Ranking Case Study 6
Pay Back IRR ARR NPV and Ranking Case Study 7
IRR Mutually Exclusive Projects and Reinvestment Case Study 8
NPV and IRR Suitability Case Study 9
Project and Equity IRR Case Study 10
Case Study NPV, PI, DPB
Introduction to Cost of Capital
Weighted Average Cost of Capital
Cost of Debt
Cost of Irredeemable Debentures
Cost of Redeemable Debentures
Case Study on Cost of Debentures
Cost of Preference Shares
Cost of Redeemable Preference Shares
Cost of Equity
Cost of Equity under Dividends Price Approach
Cost of Equity under Earnings Price Approach
Cost of Equity under Realised Yield Approach
Cost of Equity under Capital Asset Pricing Model
Case Study on Cost of Equity
Case Study on Implied Return on Equtiy
Case Study on Cost of Equity with Additional Finance
Case Study on WACC
Case Study on WACC and Cost of Equity
Case Study on WACC (Book Value and Market Value)
Case Study on WACC (with Additional Borrowings)
Case Study on WACC (with Book Value and Market Value)
Case Study on WACC (Market Value)
Case Study WACC & Marginal Cost of Capital
Case Study Cost of Retained Earnings
Case Study Preference Shares
Case Study WACC
Introduction to Leverage (Talking Head)
Leverage Formula (Talking Head)
Leverage Analysis Case Study 1 (Talking Head)
Leverage Analysis Case Study 2 (Talking Head)
Leverage Analysis Case Study 3 (Talking Head)
Leverage and its Types
Leverage Concept Example
Leverage Analysis and Sales Movement
Case study on Degree of Leverage
Case study on Degree of Operating Leverage
Case Study 2 on Degree of Leverage
Case Study 3 on Degree of Leverage
Optimal Capital Structure Explanation
Indifference Point - Taking Head
Indifferent Point Case Study 1 - Talking Head
Indifference and Financial Break Even Point Case Study 2 - Talking Head
Indifference point chart case study - Talking Head
Financial Break Even and Indifference Analysis
Case Study Leverages
author

CA N Raja Natarajan

Instructor

I am a Chartered Accountant with tonnes of passion for teaching.

I teach Financial Management & Strategic Financial Management for Chartered Accountancy, Cost and Management Accountancy and Company Secretary students in Ernakulam, India. I also hold Post Graduate Diploma in Business Administration in Finance from Symbiosis, Pune and Bachelors in Commerce, from Loyola College, Chennai.

I worked in State Bank of India as Assistant Vice President - Credit for a period of four years after which i started my Chartered Accountancy Practice. During the stint in State Bank of India, I worked on credit proposals of Mid Corporate Units and gained good experience in Financial Analysis, Risk Assessment, Viability Study, Evaluating business models, Project Finance, Working Capital Management, etc.

I conduct work shops for Entrepreneurs, Chartered Accountancy / Cost and Management Accountancy Students on the topics like Project Finance, Credit Risk Assessment, Entrepreneurship Development, Finance for Non Finance Executives, etc.

I love teaching and i want fundamentals of accounting and finance to reach students and so i am here.