Learn corporate financing options related to common stock & preferred stock form a certified public accountant CPA
β±οΈ Length: 8.4 total hours
β 4.54/5 rating
π₯ 29,410 students
π February 2022 update
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- Course Overview
- This comprehensive course delves into the intricate world of equity financing, focusing specifically on the strategic deployment and characteristics of both common and preferred stock as foundational elements of a company’s capital structure. It moves beyond mere definitions to explore the practical implications of issuing these securities from the perspective of a corporate finance manager or an investor.
- Gain a deep understanding of why companies choose one form of equity over another, examining the strategic trade-offs involved in balancing ownership dilution, voting control, dividend obligations, and the overall cost of capital. This section unpacks the motivations behind various equity financing decisions in diverse market conditions.
- Explore the lifecycle of equity financing, from initial public offerings (IPOs) and subsequent secondary offerings to the ongoing management of shareholder relations and investor expectations. The course provides insights into how equity instruments influence a company’s financial stability and growth prospects.
- Examine the impact of different equity structures on corporate governance, including how the distribution of voting rights and dividend preferences can shape board dynamics and management accountability. Understand the nuanced relationship between a company’s financing choices and its long-term strategic direction.
- Delve into the market mechanisms and regulatory environment surrounding the issuance and trading of common and preferred stock, appreciating the complexities involved in complying with financial regulations and attracting capital from various investor types, both domestic and international.
- Requirements / Prerequisites
- A foundational grasp of basic financial accounting principles, including the ability to interpret financial statements such as the balance sheet, income statement, and statement of cash flows, is essential for contextualizing financing decisions.
- Familiarity with core corporate finance concepts, such as the time value of money, risk and return, and capital budgeting fundamentals, will provide a strong analytical framework for understanding the valuation and cost implications of equity.
- Basic proficiency in spreadsheet software (e.g., Microsoft Excel) is recommended for analyzing financial data and working through practical examples, enhancing the ability to build and manipulate financial models.
- A curious mindset and a willingness to engage with complex financial instruments and strategic decision-making processes are crucial for maximizing learning outcomes from this detailed exploration of equity financing.
- Skills Covered / Tools Used
- Capital Structure Analysis: Develop the ability to critically analyze and recommend optimal capital structures, evaluating the pros and cons of common versus preferred stock in various corporate scenarios, and understanding their impact on a company’s financial leverage and risk profile.
- Strategic Financial Decision-Making: Enhance your capacity to make informed financial decisions regarding equity issuance, considering market conditions, investor appetite, and the long-term strategic objectives of the firm.
- Equity Market Understanding: Cultivate a sophisticated understanding of how equity markets function, including the roles of investment banks, institutional investors, and regulatory bodies in facilitating equity transactions.
- Financial Modeling Proficiency: Although specific calculations from the “What You Will Learn” section are excluded, the course will implicitly strengthen your financial modeling capabilities by requiring you to think through the variables and assumptions underpinning equity financing structures, preparing you to build comprehensive financial projections and valuation models related to equity.
- Investor Relations Acumen: Gain insights into the principles of effective investor relations, understanding how financing choices can be communicated to shareholders and the broader market to maintain investor confidence and attract future capital.
- Risk Management in Financing: Learn to identify and mitigate financial risks associated with different equity instruments, including dilution risk, dividend commitment risk, and market liquidity risk, equipping you with a holistic view of financing challenges.
- Benefits / Outcomes
- Enhanced Career Prospects: Position yourself for advanced roles in corporate finance, investment banking, private equity, portfolio management, or financial analysis, where a deep understanding of equity financing is paramount.
- Informed Investment Decisions: Equip yourself with the knowledge to critically evaluate companies based on their equity financing strategies, enabling more astute investment decisions as a sophisticated individual or institutional investor.
- Strategic Business Acumen: Develop a robust understanding of how financing choices underpin a company’s overall business strategy, allowing for more comprehensive and impactful contributions in any business leadership role.
- Certification Readiness: While not a direct certification course, the material provides excellent foundational knowledge applicable to professional certifications like the CFA (Chartered Financial Analyst) or other finance-related examinations, by covering core topics in corporate finance.
- Practical Application: Translate theoretical knowledge into practical skills applicable to real-world corporate challenges, from structuring a new share issuance to understanding the implications of different classes of stock on a firm’s market valuation and control.
- PROS
- Expert Instruction: Taught by a certified public accountant (CPA), ensuring a practical, real-world perspective grounded in professional standards and experience.
- High Student Satisfaction: Evidenced by a strong 4.54/5 rating, indicating high quality and effectiveness of the course delivery and content.
- Significant Student Enrollment: Attracting nearly 30,000 students suggests broad appeal and established relevance in the field of corporate finance.
- Up-to-Date Content: The February 2022 update ensures the material reflects current market practices and regulatory environments, crucial in a dynamic field like finance.
- Focused Specialization: Provides an in-depth, specialized exploration of common and preferred stock, offering detailed insights often generalized in broader finance courses.
- Flexible Learning: The 8.4-hour duration allows for thorough coverage without being overly lengthy, making it accessible for busy professionals to integrate into their schedules.
- CONS
- Limited Interactive Opportunities: As a pre-recorded, self-paced online course, it may offer fewer opportunities for real-time Q&A or direct instructor interaction compared to live classroom or synchronous online formats.
Learning Tracks: English,Finance & Accounting,Financial Modeling & Analysis
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