Corporate Financial Decision-Making for Value Creation

Go to Course: https://www.coursera.org/learn/value-creation

Introduction

**Course Review: Corporate Financial Decision-Making for Value Creation** In today's fast-paced and increasingly complex business environment, mastering the intricacies of corporate finance is essential for professionals looking to enhance their decision-making skills. The course "Corporate Financial Decision-Making for Value Creation," offered through a collaboration between the University of Melbourne and Bank of New York Mellon (BNY Mellon) on Coursera, provides a comprehensive exploration of the critical financial choices faced by modern corporations. **Course Overview** "Corporate Financial Decision-Making for Value Creation" delves into the financial strategies and tools that organizations utilize to maximize their asset value. This course is part of a specialized program that equips participants with the knowledge and skills needed to navigate the financial landscape effectively. The curriculum is designed for decision-makers in finance, helping them understand the principles that guide corporate financial strategies. **Syllabus Breakdown** 1. **Alternative Approaches to Making the Optimal Investment Decision**: The course kicks off by examining various investment evaluation methods used by corporations. Students will engage with concepts such as sensitivity analysis, which extends beyond the binary “invest-don’t-invest” decision. This section sets a solid foundation for understanding how robust decision-making frameworks can lead to optimal investment choices. 2. **Raising Capital and the Choices Firms Face**: In week two, the focus shifts to capital raising mechanisms, particularly initial public offerings (IPOs). This segment highlights the intricacies of how firms access equity capital and the implications of incorporating debt into financial structures. Participants will gain insight into the different factors affecting debt levels and how to make informed decisions regarding profit distribution to shareholders. 3. **Creating Value via Takeovers, Mergers, and Corporate Restructuring**: Week three takes a deeper dive into mergers and acquisitions, providing critical analysis techniques for assessing changes in corporate control. The course addresses the often-posed question of how growth through mergers can create wealth, while also exploring how corporate restructuring can potentially add value by streamlining operations. This balanced perspective equips professionals with the skills to evaluate both strategies effectively. 4. **Alternative Approaches to Risk Management**: The final week introduces participants to various derivative securities and their application in risk management. By examining forwards, futures, and options, students will learn about key drivers of option values and the creation of diverse payoff structures. This section underscores the importance of effective risk management in enhancing shareholder value, a critical skill for finance professionals. **Recommendation** "Corporate Financial Decision-Making for Value Creation" is highly recommended for finance professionals, corporate managers, and anyone keen on understanding the financial dynamics that underpin corporate strategies. The course offers practical insights, backed by robust academic frameworks, making it equally beneficial for newcomers and seasoned professionals in the financial sector. The course is well-structured and engaging, providing learners with not just theoretical knowledge but also practical applications. The collaboration between the University of Melbourne and BNY Mellon ensures that the content is not only academically rigorous but also relevant to current industry practices. **Final Thoughts** In conclusion, if you're looking to enhance your knowledge of corporate finance and refine your decision-making skills, this course is a valuable investment in your professional development. It prepares you to tackle real-world challenges and empowers you to contribute meaningfully to your organization’s financial success. With its comprehensive syllabus, expert instructors, and flexible online format, "Corporate Financial Decision-Making for Value Creation" stands out as an essential course for aspiring finance leaders.

Syllabus

Alternative Approaches to Making the Optimal Investment Decision

This week we will define and explain the key approaches to investment evaluation utilized by corporations around the world. We will also consider the way in which sensitivity analysis might be employed so as to provide information to management beyond the simple “invest-don’t-invest” decision.

In week 2 we will explain the mechanics behind how firms go to the market via an initial public offering (IPO) to raise new equity capital. We then demonstrate the impact of introducing debt on the returns to shareholders and highlight the different factors that influence debt levels for firms operating in different industries. We conclude by considering how firms make decisions about the optimal level of profits that should be returned to shareholders.

During week 3 we will explain how takeovers and mergers occur in practice, define the key terms used in the analysis of markets for corporate control and then develop an understanding of how changes in control might be objectively assessed via financial analysis. In addition to answering the question “how might we create wealth through growth?” we will also consider how value might be created by getting smaller in our review of the impact of corporate restructuring on shareholder wealth.

In the final week of this course we define and demonstrate the use of different derivative securities in risk management including; forwards, futures and option contracts. We explain the key drivers of option values and explain how options might be combined to provide different payoff structures. We conclude by considering how risk management might create value for shareholders.