Corporate Finance :
The CFA charter is one of the most respected designations in finance, considered by many to be the gold standard in the field of investment analysis. This is the first of three exams offered by the CFA Institute. The CFA program is a globally recognized standard for measuring the competence and integrity of financial analysts. It is necessary to ensure that the concepts are strong in Level One as a lot of them will be carried forward and acted upon in Level Two. The CFA charter is one of the most respected designations in finance, considered by many to be the gold standard in the field of investment analysis.
Through this course we are specifically looking into the corporate finance section of CFA level 1 curriculum. Here we are going to understand about concepts such as capital budgeting, principles of capital budgeting, internal rate of return, discount cash flow, IRR vs. NPV project rankings. Next we learn about concepts related to capital structure such as cost of capital, target (optimal) capital structure, role of WACC/MCC to find NPV, cost of capital for a project.
After this we would see country risk premium, measure of leverage, degree of financial leverage, firm characteristics and leverage. Looking into the concepts related to investments we understand dividends and share repurchases basics, stock dividends, stock splits, dividend payment procedure, share repurchase with borrowed funds, share repurchase vs cash dividend.
Next important concepts are managing working capital management, liquidity ratios, managing net daily cash, cash management and IPS, evaluating performance. Finally we will see what is corporate governance and code of ethics.
- To summarize material in accordance to the Learning Outcome Statements provided by CFA institute for Corporate finance.
- To create a solid understanding of the ground concepts in Level One. This can then be carried upon by candidates in the levels ahead.
- Others who are interested in a career in Investment Management
- Bachelor’s degree or equivalent. An exemption can be made where you can write the CFA level 1 if you
a) Are in the final year of your undergraduate program,
b) Have four years of professional experience, or
c) Have a combination of both, equating to at least four years.
- Passion to learn. It is not an easy program to complete. It is considered as one of the toughest degrees to obtain in the financial world.