Corporate Finance

About this assessment

This assessment is designed for professionals and students in finance who want to deepen their understanding of key financial decision-making areas. It covers comprehensive topics from effective capital budgeting and investment decisions to the intricacies of capital structure, financing choices, and cost of capital. In addition, it examines strategic dividend policies and the dynamic world of mergers and acquisitions. Participants will gain practical insights into how companies evaluate investment opportunities, optimize funding, manage shareholder expectations, and drive growth through strategic transactions. Whether you're looking to enhance your analytical skills or stay current with industry practices, this assessment provides a valuable framework for making informed financial decisions in today’s complex business environment.

This section assesses advanced topics in corporate finance focusing on capital budgeting. The questions evaluate understanding of essential methods such as Net Present Value, Internal Rate of Return, and Profitability Index, as well as their applications and limitations in investment decision making.

This section tests advanced knowledge on capital structure decisions, with a focus on debt versus equity financing, including trade-off theory, pecking order theory, and the implications of leveraging in corporate finance. The section covers topics such as tax shield benefits, cost of capital, signaling, agency costs, and optimal financing strategies.

This section covers advanced topics in corporate finance with an emphasis on the cost of capital, including the estimation of cost of equity using models, the impact of leverage, the role of beta, tax effects on financing, and methods used in adjustments. The questions probe the analytical and practical aspects in evaluating capital costs.

This section covers advanced topics on dividend policy in corporate finance. Topics include dividend irrelevance theory, stable and residual dividend policies, signaling and clienteles effects, agency conflicts related to dividend decisions, dividend smoothing, and the interplay between dividend policy and capital structure.

This section covers advanced topics in mergers and acquisitions, including synergy creation, due diligence, valuation techniques, financial instruments for acquisition financing, hostile takeover defenses, regulatory impacts, post-merger integration, strategic rationales, deal structuring, and shareholder impacts.