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Learn › University level › RS 202
RS 202 · Level 200 · Intermediate

Corporate Finance

This course teaches how companies decide what to invest in, how to pay for it and what to return to shareholders. This free course by runs to ten modules and about 20 study hours.

An empty boardroom with a long table and floor-to-ceiling windows

Photo: Benjamin Child, CC0, via Wikimedia Commons (cropped).

Start Module 1 →
You’ve completed 0 of 10 modules — 0%.

What you'll be able to do

  • Discount any stream of cash flows.
  • Evaluate a project with NPV and IRR.
  • Build project cash flows.
  • Estimate a cost of equity and a WACC.
  • Explain how debt changes firm value.
  • Judge a dividend, a buyback and an acquisition.
Before you startPrerequisite: RS 201 Financial Statement Analysis. Tools used: a spreadsheet, the RiskStock stock valuation calculator, company filings.
How this course worksEach module has objectives, the lesson with worked examples, a practice mission using a real filing, a RiskStock tool or a spreadsheet, and a quiz. Pass a module quiz with 75% to mark it complete; quizzes can be retaken as often as you like. When the modules are done, complete the capstone and the 20-question final exam (pass mark 70%, one retake every 24 hours). Passing both unlocks a certificate of completion, and completing all nine university-level courses earns the Advanced Diploma. Everything is saved in your browser; no account is needed.

The syllabus

Ten modules and about 20 study hours in all: short, dense lessons (about 62 minutes of reading), then the worked problems, practice missions, quizzes and the capstone.

1
The goal of the firm and the three decisions Core
State the financial goal of a company and describe the agency problem.
~6 min read · ~2 hr with practice
○
2
The time value of money Core
Compute present and future values of single sums, annuities and perpetuities, and convert between quoted and effective rates.
Video 3:40~6 min read · ~2 hr with practice
○
3
Investment decision rules Core
Calculate NPV, IRR, payback and profitability index, and explain why NPV is the primary rule.
~6 min read · ~2 hr with practice
○
4
Building project cash flows Core
Identify incremental cash flows and build a complete project forecast.
~7 min read · ~2 hr with practice
○
5
Risk, return and the cost of equity Core
Separate diversifiable from market risk, apply the CAPM, and adjust beta for leverage.
~6 min read · ~2 hr with practice
○
6
The weighted average cost of capital Advanced
Calculate WACC from market data and avoid the common errors.
~6 min read · ~2 hr with practice
○
7
Capital structure Advanced
Explain the Modigliani-Miller propositions, the trade-off theory and the pecking order.
~6 min read · ~2 hr with practice
○
8
Payout policy Advanced
Compare dividends with buybacks and explain what each signals.
~6 min read · ~2 hr with practice
○
9
Raising capital and managing working capital Advanced
Describe the sources of funding across a firm’s life and calculate the cost of trade credit.
~6 min read · ~2 hr with practice
○
10
Value creation, acquisitions and real options Advanced
Link ROIC, growth and WACC to value; evaluate an acquisition; recognize real options.
~7 min read · ~2 hr with practice
○
After the modulesThe capstone project →

Your notes

Every note you take in a module collects here. They're stored only in this browser, so export them to keep them.

Common questions

Is RS 202 really free?

Yes. All ten modules, the quizzes, the capstone, the 20-question final exam and the certificate are free and need no sign-up. Your progress, scores and notes are saved privately in your own browser.

What should I know before starting?

The suggested prerequisite is RS 201 Financial Statement Analysis. The 200-level courses can be taken in any order once the prerequisite is done.

How long does it take?

About 20 study hours. The reading itself is short and dense, about 62 minutes; most of the time goes on the worked problems, the practice missions, the quizzes and the capstone.

Is the course for Canadian or US investors?

Both. Where rules, terms or tax treatment differ between Canada and the United States, the module says so and names both versions.

Is the certificate a professional qualification?

No. It is a certificate of completion from a free educational course. It is not a licence, an accreditation or a professional designation.

Who wrote this course?

It was written by Elizabeta Dimoska, founder and writer of RiskStock. RiskStock is educational and is not a registered dealer or adviser.

Keep learning

Related on RiskStock: DCF fundamentals · The dividend discount model · RS 201 Financial Statement Analysis · All nine university-level courses

Educational content only — not investment, tax or legal advice. Companies, tickers and figures in this course are illustrative examples, not recommendations to buy or sell any security. Regulatory figures, limits and tax rules change; confirm current details with the regulator or tax authority. Worked examples are not forecasts. RiskStock is not a registered dealer or adviser, and its certificates are certificates of completion, not licences. Course written by Elizabeta Dimoska.