About this Course
250 ratings
43 reviews

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Start instantly and learn at your own schedule.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Approx. 16 hours to complete

Suggested: 8 hours/week...


Subtitles: English, Korean

Skills you will gain

Risk ManagementCorporate FinanceMergers And Acquisitions (M&A)Debt

100% online

Start instantly and learn at your own schedule.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Approx. 16 hours to complete

Suggested: 8 hours/week...


Subtitles: English, Korean

Syllabus - What you will learn from this course

1 hour to complete

Course Orientation

You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course....
2 videos (Total 13 min), 5 readings, 1 quiz
2 videos
Welcome to Corporate Finance II: Financing Investments and Managing Risk11m
5 readings
About the Discussion Forums10m
Social Media10m
Getting to Know Your Classmates10m
1 practice exercise
Orientation Quiz10m
3 hours to complete

Module 1: Raising Financing: The Capital Structure Decision

In Module 1, we will discuss the differences between debt and equity financing for corporations. We will then learn how to avoid usual mistakes that people make when analyzing the choice between debt and equity. We will work with financial statements to understand the impact of higher debt on corporate profits, and we will learn how debt and risk are fundamentally related. Finally, we will use our knowledge to understand how companies choose how much debt to have....
12 videos (Total 122 min), 2 readings, 3 quizzes
12 videos
Issuing Debt and Equity – The Mechanics11m
Should a Company Issue Debt or Equity?9m
Two Misconceptions8m
Debt Increases Systematic Risk10m
Evidence From the Field: Which Type of Capital Do Firms Prefer?9m
The Effect of Leverage On Taxes and Profits7m
Leverage and Personal Taxes9m
Leverage and the Risk of Financial Distress9m
The Trade-off Theory of Capital Structure7m
Analog Outfitters30m
1-11: Module 1 Review3m
2 readings
Module 1 Overview10m
Module 1 Readings10m
3 practice exercises
Practice Quiz 112m
Practice Quiz 216m
Module 1 Quiz16m
5 hours to complete

Module 2: Understanding Debt Financing and Payout Policy

In Module 2 we will dig deeper into the mechanics and the institutional details that are important to understand debt financing. We will learn models that allow us to link default probabilities to yields on a company’s debt. We will discuss the roles of credit ratings and credit default swaps for debt markets. We will learn the importance of non-price contractual terms such as debt covenants, collateral and seniority. We will use this knowledge to understand how companies choose between bank debt and bond financing. Finally, we will discuss how payout decisions (dividends and share repurchases) affect firm value and how companies choose their optimal payout policy....
12 videos (Total 109 min), 2 readings, 5 quizzes
12 videos
Pricing Debt: Yield to Maturities, and Default Probabilities12m
Credit Ratings: Determinants and Implications12m
Credit Default Swaps10m
The Many Different Types of Debt8m
Bank or Market Financing?13m
Do Dividends and Share Repurchases Affect Firm Value?9m
Main Factors Driving Payout Decisions8m
Dividends or Repurchases?11m
2-10: Module 2 Review2m
Assignment 1 Overview1m
Assignment 1 Discussion15m
2 readings
Module 2 Overview10m
Module 2 Readings10m
4 practice exercises
Practice Quiz 110m
Practice Quiz 212m
Practice Quiz 310m
Module 2 Quiz20m
3 hours to complete

Module 3: Risk Management

In Module 3 we will identify good and bad reasons why companies engage in risk management, or hedging. We will learn the mechanics of how to use derivatives such as forwards and futures to eliminate specific risks. We will also discuss how to manage risks that cannot be hedged with derivatives. In particular, we will learn that appropriate liquidity management can work as a substitute for hedging strategies. We will also discuss how and why to hedge currency risk, and how to think about a company’s cost of capital when making cross-border investments. ...
11 videos (Total 96 min), 2 readings, 3 quizzes
11 videos
Good and Bad Reasons to Hedge9m
Forward Contract6m
Futures Contracts9m
Hedge Ratios and Imperfect Hedging7m
Liquidity as a Substitute for Hedging12m
Bilateral Contracts9m
Operational Hedging10m
Currency Risk and the Cost of Capital13m
Adjusting the Cost of Capital for International Projects11m
3-11 Module 3 Review3m
2 readings
Module 3 Overview10m
Module 3 Readings10m
3 practice exercises
Practice Quiz 118m
Practice Quiz 212m
Module 3 Quiz16m
6 hours to complete

Module 4: Financial Management of Acquisitions and R&D

In Module 4, we will apply the financial management tools that we developed in this course to M&A decisions and R&D programs. We will learn how to finance an M&A deal, and how companies choose between cash and stock payments to acquire target companies. We will also discuss the financing of LBOs (leveraged buyouts), and learn how to model a leveraged buyout using Excel. We will then discuss the financial management of R&D programs, with an emphasis on risk management. Specifically, we will learn how to think about the financing of R&D in a dynamic framework that considers the need to make uncertain follow up investments....
14 videos (Total 158 min), 2 readings, 5 quizzes
14 videos
Means of Payment in M&A16m
Capital Structure and Payout Policy in M&A Part I12m
Capital Structure and Payout Policy in M&A Part II12m
Financing Private Equity Deals Part I8m
Financing Private Equity Deals Part II11m
Leveraged Buyout (LBO) Modeling Part I8m
Leveraged Buyout (LBO) Modeling Part II16m
Financing R&D Investments8m
Risk Management for R&D Projects10m
Nona Inc.28m
4-11: Module 4 Review2m
Assignment 2 Overview1m
Assignment 2 Discussion16m
2 readings
Module 4 Overview10m
Module 4 Readings10m
4 practice exercises
Practice Quiz 116m
Practice Quiz 216m
Practice Quiz 38m
Module 4 Quiz20m
15 minutes to complete

Course Conclusion

You will find out where to go next after completing this course and be able to share any thoughts you have on this course experience....
1 video (Total 15 min)
1 video
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Top Reviews

By GMFeb 22nd 2018

Excellent conclusion from what I learned in the the first course, this makes it more interesting of course, but I would recommend to take both courses, Thanks Almeida

By SXDec 6th 2018

Fantastic Value Adding Course. Very Practical with a lot of good examples. Excellent conceptual breadth and depth also in this course. Highly recommended.



Heitor Almeida

Professor of Finance, Stanley C. and Joan J. Golder Chair in Corporate Finance
Department of Finance, College of Business

Start working towards your Master's degree

This course is part of the 100% online Master of Business Administration (iMBA) from University of Illinois at Urbana-Champaign. If you are admitted to the full program, your courses count towards your degree learning.

About University of Illinois at Urbana-Champaign

The University of Illinois at Urbana-Champaign is a world leader in research, teaching and public engagement, distinguished by the breadth of its programs, broad academic excellence, and internationally renowned faculty and alumni. Illinois serves the world by creating knowledge, preparing students for lives of impact, and finding solutions to critical societal needs. ...

About the Financial Management Specialization

This Specialization covers the fundamentals of strategic financial management, including financial accounting, investments, and corporate finance. You will learn to evaluate major strategic corporate and investment decisions and to understand capital markets and institutions from a financial perspective, and you will develop an integrated framework for value-based financial management and individual financial decision-making. The Financial Management Specialization is part of the University of Illinois iMBA Program. Each course in this Specialization also fulfills a portion of the requirements for a University of Illinois course that can earn you college credit. When you complete the Financial Management Specialization, you will: · Have a solid foundation in developing an integrated framework for strategic financial decision-making. · Have a thorough understanding of financial statements and the financial information they provide, and be able to critically evaluate and analyze cash flows statements. · Understand the management and evaluation of portfolios and firm valuation techniques. · Understand how to incorporate risk and uncertainty into investment decisions and understand how companies make financing and investment decisions....
Financial Management

Frequently Asked Questions

  • Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.

  • When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.

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