Risk and Return in Corporate Finance

This module introduces the fundamental concepts of risk and return in financial assets and explores the Capital Asset Pricing Model (CAPM). Students will learn how to measure risk, understand the relationship between risk and expected returns, and apply the CAPM framework to estimate expected returns based on risk profiles.

This module focuses on calculating the Weighted Average Cost of Capital (WACC) and analyzing how changes in a company's capital structure affect its overall cost of capital. Students will learn to assess the relative costs of debt and equity financing and understand how leverage impacts a firm's risk profile and valuation.

This module applies theoretical concepts to a practical case study on estimating the Weighted Average Cost of Capital for a real company. Students will work through the entire process of gathering relevant financial data, calculating component costs, and determining the appropriate WACC for valuation purposes.

This culminating module integrates all previous concepts into a comprehensive valuation case study. Students will apply their knowledge of risk assessment, return calculations, and WACC determination to complete a full firm valuation using discounted cash flow analysis. The module serves as a practical capstone that reinforces and synthesizes the key financial concepts covered throughout the course.