Cfa Corporate Finance Level 2

Learn CFA Corporate Finance Level 2 Syllabus with more illustrations and case studies

What you'll learn
Master Reading 23 Capital Budgeting
Master Reading 24 Capital Structure
Master Reading 25: Dividends and Shares Repurchase: Analysis

Requirements
CFA Level 1 Corporate Finance

Description
Welcome to Corporate Finance CFA Level 2 Course. 
As the name indicates, this course covers Corporate Finance Paper of Level 2 of CFA Exams.
About Coverage:
Section 1 will cover Reading 23: Capital Budgeting
Section 2 will cover Reading 24: Capital Structure
Section 3 will cover Reading 25:Dividends and Share Purchases: Analysis

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
calculate the yearly cash flows of expansion and replacement capital projects and evaluate how the choice of depreciation method affects those cash flows;explain how inflation affects capital budgeting analysis;evaluate capital projects and determine the optimal capital project in situations of               a) mutually exclusive projects with unequal lives, using either the least common multiple of lives approach or the equivalent annual annuity approach, and b) capital rationing;explain how sensitivity analysis, scenario analysis, and Monte Carlo simulation can be used to assess the stand-alone risk of a capital project;explain and calculate the discount rate, based on market risk methods, to use in valuing a capital project;describe types of real options and evaluate a capital project using real options;describe common capital budgeting pitfalls;calculate and interpret accounting income and economic income in the context of capital budgeting;distinguish among the economic profit, residual income, and claims valuation models for capital budgeting and evaluate a capital project using each.explain the Modigliani–Miller propositions regarding capital structure, including the effects of leverage, taxes, financial distress, agency costs, and asymmetric information on a company’s cost of equity, cost of capital, and optimal capital structure;describe target capital structure and explain why a company’s actual capital structure may fluctuate around its target;describe the role of debt ratings in capital structure policy;explain factors an analyst should consider in evaluating the effect of capital structure policy on valuation;describe international differences in the use of financial leverage, factors that explain these differences, and implications of these differences for investment analysis.compare theories of dividend policy and explain implications of each for share value given a description of a corporate dividend action;describe types of information (signals) that dividend initiations, increases, decreases, and omissions may convey;explain how clientele effects and agency issues may affect a company’s payout policy;explain factors that affect dividend policy;calculate and interpret the effective tax rate on a given currency unit of corporate earnings under double taxation, dividend imputation, and split-rate tax systems;compare stable dividend, constant dividend payout ratio, and residual dividend payout policies, and calculate the dividend under each policy;explain the choice between paying cash dividends and repurchasing shares;describe broad trends in corporate dividend policies;calculate and interpret dividend coverage ratios based on a) net income and b) free cash flow;identify characteristics of companies that may not be able to sustain their cash dividend.
Teaching Background:
Indian scenario has been considered for explaining concepts through case studies.
Wishing you all the very best to excel in Finance World.

Overview

Section 1: Reading 23: Capital Budgeting

Lecture 1 Capital Expenditure

Lecture 2 How to Evaluate Projects

Lecture 3 Principles in Capital Budgeting

Lecture 4 Cash Flow and After tax principle

Lecture 5 Incremental Principle

Lecture 6 Factors affecting Incremental Cash Flow

Lecture 7 Inflation adj principle

Lecture 8 Long Term Fund Principle

Lecture 9 Capital Budgeting Steps

Lecture 10 Case Study NPV

Lecture 11 Case Study NPV

Lecture 12 NPV Case Study on Tax Savings 2

Lecture 13 NPV Case Study on Tax Savings

Lecture 14 Case Study NPV Tax Benefit

Lecture 15 Case Study NPV Tax Benefit

Lecture 16 NPV using Incremental Discount Rate Case Study

Lecture 17 NPV Case Study Opportunity Cost

Lecture 18 Cost Reduction Projects (Introduction)

Lecture 19 Cost Reduction Projects

Lecture 20 Case Study Cost Reduction Projects

Lecture 21 Case Study Cost Reduction Projects

Lecture 22 Cash Flows - Point of View

Lecture 23 Case Study Point of View

Lecture 24 Case Study Point of View

Lecture 25 Project and Equity IRR

Lecture 26 Abandonment Decision

Lecture 27 Abandonment Decision

Lecture 28 Replacement Decision (Excel based)

Lecture 29 Replacement Decision

Lecture 30 Aggregate Cash Flow Method (Excel based)

Lecture 31 Incremental Cash Flow Method (Excel based)

Lecture 32 Incremental Cash Flow Method (Hand written)

Lecture 33 Replacement Analysis Case Study 1

Lecture 34 Replacement Analysis Case Study 2

Lecture 35 Replacement Analysis Case Study 3

Lecture 36 Replacement Analysis Case Study 4

Lecture 37 Equated Annual Benefit & Cost

Lecture 38 Equivalent Annual Cost CS

Lecture 39 NPV over Different Life

Lecture 40 Incremental Cash Flow Method

Lecture 41 Limitations of Incremental Cash Flow Method

Lecture 42 Money and Real Cash Flows

Lecture 43 Money Disc Rate and Real Disc Rate

Lecture 44 Inflation and Multiple Cash Flow terms

Lecture 45 Intersection of Money and Real terms with inflation

Lecture 46 Money Cash Flow and Real Cash Flow Case Study 1

Lecture 47 Money Cash Flow and Real Cash Flow Case Study 2

Lecture 48 Money Cash Flow and Real Cash Flow Case Study 3

Lecture 49 Money Cash Flow and Real Cash Flow Case Study 4

Lecture 50 Present Value of Cash Flows from MCF and RCF

Lecture 51 Issues with Inflation Rate 1

Lecture 52 Issues with Inflation Rate 2 and Case Study

Lecture 53 Risk and Uncertainity

Lecture 54 Case Study Risk Uncertainity

Lecture 55 Probability and PD

Lecture 56 Expected Value

Lecture 57 Case study EV

Lecture 58 Standard Deviation

Lecture 59 Steps in Computing Standard Deviation

Lecture 60 Standard Deviation - Simple Case Study

Lecture 61 SD in Decision Making

Lecture 62 Case Stdy SD Decision Making

Lecture 63 Risk Adjusted Discount Rate

Lecture 64 Case Study RADR

Lecture 65 Case Study 2 RADR

Lecture 66 Certainity Equivalent Factor

Lecture 67 Certainity Equivalent Factor Example

Lecture 68 Case Study Certainity Equivalent Factor

Lecture 69 Sensitivity Analysis

Lecture 70 Case Study Sensitivity Analysis

Lecture 71 Comprehensive Case Study on Sensitivity Analysis

Lecture 72 Decision Tree Introduction

Lecture 73 Stages and Rules

Lecture 74 Evaluation rules

Lecture 75 Case Study 1 Decision Tree

Lecture 76 Case Study 2 Decision Tree

Lecture 77 Decision Tree Comprehensive Case Study

Lecture 78 Simulation Introduction

Lecture 79 Simulation eg

Lecture 80 Simulation steps

Lecture 81 Case Study Simulation

Lecture 82 Hilliers Model

Lecture 83 Hillier Case Study part 1

Lecture 84 Hillier Case Study part 2

Lecture 85 Sensitivity and Scenario Analysis in Capital Budgeting - Introduction

Lecture 86 Steps in Scenario Analysis

Lecture 87 Case Study 1 Scenario Analysis

Lecture 88 Case Study 2 Part 1 Scenario Analysis

Lecture 89 Case Study 2 part 2 Scenario Analysis

Section 2: Reading 24: Capital Structure

Lecture 90 Business Financing Decisions

Lecture 91 Debt Vs Equity Financing Decision

Lecture 92 Good Time and Bad Time for Debt Equity Funding

Lecture 93 Capital Structure

Lecture 94 Capital Structure (Talking Head)

Lecture 95 Capital Structure Mix (Talking Head)

Lecture 96 Factors of Capital Structure Mix (Talking Head)

Lecture 97 Desining Optimal Capital Structure (Talking Head)

Lecture 98 Capital Structure Case Study 1(Talking Head)

Lecture 99 Capital Structure case Study 2 (Talking Head)

Lecture 100 Capital Structure case Study 3 (Talking Head)

Lecture 101 Capital Structuring Case Study 4

Lecture 102 Case Study on Capital Structuring and Tax Shield

Lecture 103 Financial Break Even and Indifference Analysis

Lecture 104 Capital Structure Theories - Net Income Approach

Lecture 105 Capital Structure Theories - Net Operating Income Approach

Lecture 106 Net Income Approach Problem

Lecture 107 Capital Structure Theories - Traditional Approach

Lecture 108 Capital Structure Theories - MM Approach and Arbitrage Case Study

Lecture 109 Case study on Arbitrage

Section 3: Dividends and Share Repurchases: Analysis

Lecture 110 Introduction to the course and dividend

Lecture 111 Case Study on Basic terms of dividend

Lecture 112 Dividend Dates

Lecture 113 Case Study Dividend Dates

Lecture 114 Strategic benefits of Merger

Lecture 115 Dividends and Market Price

Lecture 116 Different Valuation Models

Lecture 117 Dividend Policy

Lecture 118 Asset based Valuation Model

Lecture 119 Case Study Asset Based Valuation Model

Lecture 120 Common Sense Approach

Lecture 121 Dividend Models

Lecture 122 Walter Model

Lecture 123 Walter Model Case Study

Lecture 124 Lintner model

Lecture 125 Lintner model Case study

Lecture 126 MM Model

Lecture 127 MM Model Formula

Section 4: FINAL SECTION

Lecture 128 Bonus Lecture

CFA Level 2 Students,,