Corporate Finance

Introduction

This course will introduce you to Corporate Finance. The main objective of the course is to provide you with insights and practical tools that will help you make sound financial decisions.The course covers two broad topics:

Part I: Financial Policy and the risk-return trade-off. 

In Part I, we will examine the factors that determine a companys need for external financing, be it debt or equity. We will then consider the optimal mix of debt and equity financing. We will also introduce you to the trade-off between risk and return in capital markets.

Part II: Valuation. 

In Part II, we will develop the tools needed for valuing investment projects, including the estimation of relevant project cash flows, estimating the cost of capital (discount rate), and dealing with risk. We will then use these tools as a basis for selecting investment projects and valuing companies.

Course content

1. Introduction to corporate finance
2. Financial planning
3. Capital budgeting
4. Risk and return. CAPM.
5. Capital structure
6. Free Cash Flow
7. Cost of capital
8. Options. real options.
9. Mergers and acquisitions