• Length:
    4 Weeks
  • Effort:
    3–4 hours per week
  • Price:

    FREE
    Add a Verified Certificate for $225 USD

  • Institution
    ColumbiaX
  • Subject:
    Business & Management
  • Level:
    Introductory
  • Language:
    English
  • Video Transcript:
    English
  • Course Type:
    Self-paced on your time

Associated Programs:

Prerequisites

Students must be familiar with basic concepts of Accounting; basic skills in Microsoft Excel (or equivalent); Students should have completed Introduction to Corporate Finance and The Free Cash Flow Method for Firm Valuation.

Interested in this course for your Business or Team?

Train your employees in the most in-demand topics, with edX for Business.

Purchase now|Request Information

About this course

Skip About this course

In this course, you will learn to estimate the expected return of equity and debt. You will also learn to estimate the weighted average cost of capital (WACC), the opportunity cost of capital you should use when discounting the free cash flows to value a firm.

In the process, you will learn to estimate the risk of financial assets and how use this measure of risk to calculate expected returns. You will also learn how the capital structure of a firm affects the riskiness of its equity and debt. Throughout the course, you will learn how to construct Excel models to value firms using hands on activities.

What you'll learn

Skip What you'll learn
  • How to measure risk
  • Estimate the expected return of an asset based on its risk
  • Adjust the risk of the equity and debt of a firm when the firm changes its capital structure
  • Calculate the weighted average cost of capital (essential input to value of firm)

Syllabus

Skip Syllabus

Week 1: Risk, return, and the Capital Asset Pricing Model (CAPM)

Week 2: The Weighted Average Cost of Capital (WACC) and the effect of capital structure on WACC

Week 3: Case study: Estimating the WACC

Week 4: Valuation capstone case

Meet your instructors

Columbia University
Daniel Wolfenzon
Stefan H. Robock Professor of Finance and Economics, Columbia Business School
Columbia University

Pursue a Verified Certificate to highlight the knowledge and skills you gain
$225 USD

View a PDF of a sample edX certificate

  • Official and Verified

    Receive an instructor-signed certificate with the institution's logo to verify your achievement and increase your job prospects

  • Easily Shareable

    Add the certificate to your CV or resume, or post it directly on LinkedIn

  • Proven Motivator

    Give yourself an additional incentive to complete the course

  • Support our Mission

    edX, a non-profit, relies on verified certificates to help fund free education for everyone globally

Interested in this course for your Business or Team?

Train your employees in the most in-demand topics, with edX for Business.

Purchase now|Request Information