Corporate Finance

Corporate Finance - Part 2 (2022)


This course consists of two modules. Module 1 looks at the key techniques used in capital budgeting, such as NPV, IRR, and the payback method, using the example of a small airline company throughout.

Module 2 looks at the key accounting metrics use to measure company business performance, such as return on equity, free cash flow to the firm, free cash flow to equity, enterprise value, and economic profit.


On completion of this tutorial, you will be able to:
- Recognise the importance of capital budgeting in selecting which investments and expenditures will increase shareholder wealth
- Identify the investment appraisal techniques used by analysts, including net present value, investment rate of return (IRR), the payback method, the discounted payback method, accounting rate of return, and profitability index (PI)
- Identify the accounting metrics that companies use to measure financial performance
- Recall the measures used to determine how well a company has managed its assets to generate profits
- Recognise alternative approaches to evaluate business performance, such as free cash to the firm, free cash flow to equity, enterprise value, and economic profit

Content Highlight

Module 1: Corporate Finance – Project Appraisal & Capital Budgeting
Topic 1: Overview of Project Appraisal & Capital Budgeting
Topic 2: Capital Budgeting
Topic 2: Project Appraisal Methods

Module 2: Corporate Finance – Measuring Business Performance
Topic 1: Overview of Accounting Metrics
Topic 2: Calculating Accounting Metrics
Topic 3: Free Cash Flow (FCF)

Administrative Details

Relevant Subject
Type 6 - Advising on corporate finance
SFC:2.00, PWMA:2.00
All Member: HKD610
Non-Member: HKD890
Staff of Corporate Member: HKD610