Introduction to Investment Banking Lifecycle of a company Understand the various stages in a company's life and how Corporate Finance is used to make professional business decisions. Why Corporate Finance An overview of the Corporate Finance tools and frameworks that are typically used to make financial decisions in a company. The Company and its financial statements Revenue & Gross Margin What is classified as revenue and how are gross margins and profits calculated? Compare a company's income statement to a personal income statement to understand the difference and similarity. Operating Expense & Net Income Understand what is the difference between Cost of Goods Sold and Operating Expenses. How to calculation Operating Income, Net Income and Profit after Tax. Become familiar with all the components of Operating Expenses and Non-operating Expenses. Gross & Net Margin Explained Learn gross margins by using examples. Also understand how gross margins are very different from net margins. Advanced Income Statement Case study of Income statement is discussed. Understand how it classifies raw materials, salaries, restaurant expenses etc. Revenue Recognition Understand the difference between cash and accrual accounting. Learn how to use MS Excel for basic accounting entries. Learn why not all revenue is alike - why is some accounted for immediately and others accounted for later. Expense Recognition Understand the difference between cash and accrual accounting. Understand why not all expenses are alike - why are some accounted for immediately and others accounted for later. Analyzing s Income Statement - Revenue & Margins Use MS Excel to recreate s Income Statement. Learn how to use Yahoo Finance and s annual filings to get relevant financial data. Learn to build basic financial ratios, benchmarking analysis such as - revenue growth rate, Salary as % of revenue, Gross Margin, Operating Income as % of Revenue. Learn to ask strategic questions about a company's operations. Analyzing Income Statement - Debt & Interest How is income statement affected if it raises debt? Learn how to build Interest expense line item using MS Excel. How do you decide how much maximum debt s can raise? Understand the rationale behind market capitalization. Balance Sheet Basics - Assets Learn the components of a basic balance sheet. Find out what constitutes current and non-current assets. Balance Sheet Basics - Liabilities & Net Worth Learn liabilities and its different types. Calculate net worth and shareholders’ equity. Financial Crisis of 2008 Understand the mechanics of the 2008 recession and why it is called a "balance sheet recession". What did Lehman Brothers do wrong? Why did they and a bunch of other investment banks go bankrupt. Balance Sheet Case study of balance sheet and its individual line items - understand terms such as gross block, fixed assets, debtors, advances, provisions, secured loans, paid up capital etc Analyzing Balance Sheet Case study of balance sheet. Strategically analyze why gross block is increasing and what are its implications on the company. How are the company’s operations affected if inventories are increasing? Find out from the balance sheet how is financing its growth - is it through equity or through debt? Double Entry Book-keeping Learn how to balance a balance sheet using double-entry bookkeeping. Understand the rationale behind the basic formula Assets = Liabilities + Net Worth Working Capital and Debt / Equity Ratio and Return on Net Worth Find out why working capital is critical to a company and how to calculate it. Learn how to calculate Debt/Equity ratio and Return on Net Worth Cash Flow Statement Basics "Cash is King". Learn how the cash flow statement connects the balance sheet and income statement. Find out the various kinds of Cash Flows - Operating, Investing and Financing activities. Building a Cash Flow Statement Build a basic cash flow statement using MS Excel. Construct the cash flow statement step by step for activities such as opening new stores, revenue and accounts receivables. Analyzing a Cash Flow Statement Strategically analyze a cash flow statement using liquidity ratio, free cash flow, operating cash flow as % of sales, Capex ratio etc. Capex How is Capex different from normal operating expenditure? Why is Capex treated differently? Understand Capex differences in various industries. Depreciation & Amortization Learn how Capex is expensed and its relation to Depreciation. Build a basic depreciation schedule using MS Excel. Also understand how amortization is different from depreciation. Taxes Understand the basics of Corporate Tax and how to calculate it. What is the difference between Tax payable and Tax expense how does that relate to deferred tax asset or liability. Building a 3 statement model Learn to think like a financial analyst and build a basic 3 statement model using MS Excel - what impact each business activity has on all the financial statements. Financial Projections How to build financial projections for 5 years. Project customers, revenue, expenses, interest, tax and profits using MS Excel. Financial Projections for a TV Channel Case study of detailed financial model of a TV Channel. Understand revenue build-up, sensitivity analysis, building assumptions, beginning and ending cash balance, hiring plan, marketing plan The Share and Valuation Shares What is a share? What is the difference between a private and a public company? How does equity dilution take place as new investors come in? Earnings per Shares Understand the most important profitability metric in a public company - EPS / Earnings per share and how to calculate it. Private and Public Companies What are the pros and cons of a private and public companies? Which is better and why? Book Value and Market Value Understand why the book value and market value of the same company could be very different values. What contributes to this difference? P/E Ratio Learn all about the most important metric to value publicly listed companies - P/E - Price to Earnings Ratio. Is higher P/E ratio necessarily better? Time Value of Money All valuation in corporate finance depends on the fundamental concept of Time Value of Money. Using real life case studies understand why cash today is more valuable than cash tomorrow and how to value such future cash flows. Net Present Value Perform one of the most important roles of a Financial Analyst by learning how to calculate ROI on a project by understand Net Present Value of future cash flows. Weighted Average Cost of Capital Learn how to calculate the discount rate or the WACC / Weighted Average Cost of Capital for a company. What is the rationale behind WACC and why does it differ between industries and companies. Discounted Cash Flow The most popular valuation metric used by all financial analysts and investment bankers. Understand how to quantify a company’s future cash flows and how to arrive at a per share equity value based on future cash flow projections. Also learn how to step by step calculate Free Cash Flow using MS Excel. Comparable Trading Analysis Learn the quick way to approximately value a company - public or private using comparable trading analysis. Comparable Acquisition Analysis Learn the quick way to approximately value a company - public or private using comparable acquisition analysis.

Topics Covered

Introduction to Investment Banking Lifecycle of a company Understand the various stages in a company's life and how Corporate Finance is used to make professional business decisions. Why Corporate Finance An overview of the Corporate Finance tools and frameworks that are typically used to make financial decisions in a company. The Company and its financial statements Revenue & Gross Margin What is classified as revenue and how are gross margins and profits calculated? Compare a company's income statement to a personal income statement to understand the difference and similarity. Operating Expense & Net Income Understand what is the difference between Cost of Goods Sold and Operating Expenses. How to calculation Operating Income, Net Income and Profit after Tax. Become familiar with all the components of Operating Expenses and Non-operating Expenses. Gross & Net Margin Explained Learn gross margins by using examples. Also understand how gross margins are very different from net margins. Advanced Income Statement Case study of Income statement is discussed. Understand how it classifies raw materials, salaries, restaurant expenses etc. Revenue Recognition Understand the difference between cash and accrual accounting. Learn how to use MS Excel for basic accounting entries. Learn why not all revenue is alike - why is some accounted for immediately and others accounted for later. Expense Recognition Understand the difference between cash and accrual accounting. Understand why not all expenses are alike - why are some accounted for immediately and others accounted for later. Analyzing s Income Statement - Revenue & Margins Use MS Excel to recreate s Income Statement. Learn how to use Yahoo Finance and s annual filings to get relevant financial data. Learn to build basic financial ratios, benchmarking analysis such as - revenue growth rate, Salary as % of revenue, Gross Margin, Operating Income as % of Revenue. Learn to ask strategic questions about a company's operations. Analyzing Income Statement - Debt & Interest How is income statement affected if it raises debt? Learn how to build Interest expense line item using MS Excel. How do you decide how much maximum debt s can raise? Understand the rationale behind market capitalization. Balance Sheet Basics - Assets Learn the components of a basic balance sheet. Find out what constitutes current and non-current assets. Balance Sheet Basics - Liabilities & Net Worth Learn liabilities and its different types. Calculate net worth and shareholders’ equity. Financial Crisis of 2008 Understand the mechanics of the 2008 recession and why it is called a "balance sheet recession". What did Lehman Brothers do wrong? Why did they and a bunch of other investment banks go bankrupt. Balance Sheet Case study of balance sheet and its individual line items - understand terms such as gross block, fixed assets, debtors, advances, provisions, secured loans, paid up capital etc Analyzing Balance Sheet Case study of balance sheet. Strategically analyze why gross block is increasing and what are its implications on the company. How are the company’s operations affected if inventories are increasing? Find out from the balance sheet how is financing its growth - is it through equity or through debt? Double Entry Book-keeping Learn how to balance a balance sheet using double-entry bookkeeping. Understand the rationale behind the basic formula Assets = Liabilities + Net Worth Working Capital and Debt / Equity Ratio and Return on Net Worth Find out why working capital is critical to a company and how to calculate it. Learn how to calculate Debt/Equity ratio and Return on Net Worth Cash Flow Statement Basics "Cash is King". Learn how the cash flow statement connects the balance sheet and income statement. Find out the various kinds of Cash Flows - Operating, Investing and Financing activities. Building a Cash Flow Statement Build a basic cash flow statement using MS Excel. Construct the cash flow statement step by step for activities such as opening new stores, revenue and accounts receivables. Analyzing a Cash Flow Statement Strategically analyze a cash flow statement using liquidity ratio, free cash flow, operating cash flow as % of sales, Capex ratio etc. Capex How is Capex different from normal operating expenditure? Why is Capex treated differently? Understand Capex differences in various industries. Depreciation & Amortization Learn how Capex is expensed and its relation to Depreciation. Build a basic depreciation schedule using MS Excel. Also understand how amortization is different from depreciation. Taxes Understand the basics of Corporate Tax and how to calculate it. What is the difference between Tax payable and Tax expense how does that relate to deferred tax asset or liability. Building a 3 statement model Learn to think like a financial analyst and build a basic 3 statement model using MS Excel - what impact each business activity has on all the financial statements. Financial Projections How to build financial projections for 5 years. Project customers, revenue, expenses, interest, tax and profits using MS Excel. Financial Projections for a TV Channel Case study of detailed financial model of a TV Channel. Understand revenue build-up, sensitivity analysis, building assumptions, beginning and ending cash balance, hiring plan, marketing plan The Share and Valuation Shares What is a share? What is the difference between a private and a public company? How does equity dilution take place as new investors come in? Earnings per Shares Understand the most important profitability metric in a public company - EPS / Earnings per share and how to calculate it. Private and Public Companies What are the pros and cons of a private and public companies? Which is better and why? Book Value and Market Value Understand why the book value and market value of the same company could be very different values. What contributes to this difference? P/E Ratio Learn all about the most important metric to value publicly listed companies - P/E - Price to Earnings Ratio. Is higher P/E ratio necessarily better? Time Value of Money All valuation in corporate finance depends on the fundamental concept of Time Value of Money. Using real life case studies understand why cash today is more valuable than cash tomorrow and how to value such future cash flows. Net Present Value Perform one of the most important roles of a Financial Analyst by learning how to calculate ROI on a project by understand Net Present Value of future cash flows. Weighted Average Cost of Capital Learn how to calculate the discount rate or the WACC / Weighted Average Cost of Capital for a company. What is the rationale behind WACC and why does it differ between industries and companies. Discounted Cash Flow The most popular valuation metric used by all financial analysts and investment bankers. Understand how to quantify a company’s future cash flows and how to arrive at a per share equity value based on future cash flow projections. Also learn how to step by step calculate Free Cash Flow using MS Excel. Comparable Trading Analysis Learn the quick way to approximately value a company - public or private using comparable trading analysis. Comparable Acquisition Analysis Learn the quick way to approximately value a company - public or private using comparable acquisition analysis.