The goal of the course is to help students develop an advanced perspective on how firms make investment and financing decisions. It covers the three main aspects of modern corporate finance: capital budgeting, financing, and capital structure.
Capital budgeting concerns how a firm makes investment decisions to increase its value. The course applied the fundamental concept of time value of money (covered in “Corporate Finance”) to capital budgeting decisions. The course introduces different investment decision criteria and illustrates the calculation of free cash flow.
The course then studies firm's financing options, equity and debt. For equity market, several stock valuation methods are discussed in detail. For debt market, general bond valuation method and corporate bonds are covered.
The last part of the course combines equity and debt together to develop the concept of weighted average cost of capital, which links a firm's capital budgeting decision with its financing decision.
Ghassen BOUSLAMA
Séminaire
English
None
Spring 2023-2024
1. Class participation (10%)
2. Midterm exam (30%)
3. Final Exam (60%)
Berk, J., DeMarzo, P. (2016). Corporate Finance (4th Edition), Pearson.