Online | 8 weeks | 1.5 Credit Hours
Explore the information found in financial reports. Your focus will remain on financial data in this course, and you'll become more adept at analyzing that information. An in-depth look at financial statements will introduce you to the concepts of earnings before interest and taxes (EBIT), free cash flow (FCF), and more.
Financial ratios can be used to detect business strengths and weakness and you'll gain an understanding of those calculations. As you strengthen your fluency in Excel, you'll learn to calculate present and future value of both single cash flow and uneven cash flow. The value of a business is based on more than cash flow and assets and you'll examine the various models used for both corporate and stock valuation.
Determining the cost of a business project requires that you know the cost of equity and debt. You'll explore how these costs are used to determine the weighted average cost of capital (WACC). Capital budgeting is used to evaluate cash flows and give you a better picture of an investment's potential.
You'll see how net present value (NPV) and internal rate of return (IRR) are used to illustrate an investment opportunity's strengths and weaknesses. Risk is another vital consideration in an investment scenario and you'll explore risk analysis as well as cash flow estimation.
The ability to forecast operations is key in creating a financial plan that will identify and eliminate financing deficit or surplus. You'll consider that process in combination with the Additional Funds Needed equation to estimate if supplementary external financing is needed for the investment.