- Explain how to make projections while capital budgeting.
- Describe various capital budgeting scenarios.
- Summarize how to handle unexpected events while capital budgeting.
- Cite the various drawbacks of IRR.
- Describe the important considerations for buying back stock.
- Name the factors to consider when preparing a forecast.
- Summarize the process of cash flow budgeting.
- Name the factor that’s most difficult to change in an operating margin.
- Identify stress test tools for budgeting in Excel.
Skill Level Intermediate
- [Michael] Hi, I'm Dr. Michael McDonald. I'm a professor of finance and a financial consultant with experience with more than a dozen major corporations and government groups. In this course, I will show you how to pick investments for your firm, determine your cost capital, and perform basic operational budgeting and scenario analysis. Now, all of this will be done through the lens of Excel, a key tool for corporate finance professionals. We will be using exercise files. If you'd like to follow along and do those with me, please download the exercise folder to your desktop.
Those exercise files are labeled based on the chapter number and video number. You'll start with the Begin Excel file for the chapter that you are working on and that same example will be used throughout the chapter. If you're ready to be a more effective corporate finance professional, then let's get started now.