This section of CMA USA Part 2 provides a complete overview of corporate finance, preparing students to understand and apply financial concepts in real-world scenarios. The course begins with the fundamentals, introducing what corporate finance is, its objectives, and key principles. It then explores risk and return, long-term financial management, and the present value concept to help evaluate investment decisions. Students learn about bonds, preference and common shares, and other equity instruments, along with capital structure and cost of capital. Derivatives are explained in detail, including forwards, futures, and options. The course also covers working capital management, cash and accounts receivable management, inventory, marketable securities, and short-term finance. International finance topics are addressed, including foreign exchange risk, capital raising, and corporate restructuring strategies. Practical examples are used throughout to illustrate decision-making, valuation, and financial planning techniques. By completing this section, students gain a solid foundation in corporate finance, enabling them to assess investments, manage financial risks, and make strategic financial decisions—essential for success in CMA USA Part 2.
