Corporate Finance_course Structure

[pic 1]

Stefan Arping

Associate Professor of Finance

Master in International Finance

Advanced Corporate Finance & Valuation

September/October 2016

Course Subject, Objectives & Contents

This course provides a hands-on treatment of principles of modern corporate finance with a focus on corporate valuation. After a review of key concepts (financial statements, cash flows, present and net present value), we will discuss various valuation methodologies [adjusted present value (APV) method, flow-to-equity (FTE) method, weighted average cost of capital(WACC) method, valuation multiples] and apply them to a variety of business contexts, including capital budgeting, M&A, leveraged buy outs, private equity and international project finance. Our aim is to get an understanding of the conceptual underpinnings, workings and limitations of valuation methodologies at a level that goes beyond the typical undergraduate or MBA corporate finance course. The last part of the course will discuss capital structure and, time permitting, payout policy.

Prerequisites

The course assumes knowledge of basic corporate finance, investments and financial accounting at the level of the MIF pre-course training.

Credits & Study Load

4 EC, 112 hours

Time Period and Format

• Semester 1, Block 1

• 6 sessions, 18.30 to approximately 22.00

• 1 review and exam prep session during the study week (no mandatory attendance)

Course Material

• Textbook: Berk, J. and P. DeMarzo (BD), Corporate Finance, 3rd edition (global edition), Pearson, with student access card to MyFinanceLab.

• Other course material: online

1

[pic 2]

Assignments

• The group case assignments require you to prepare and submit case solution write-ups. Permissible group sizes range from 2 to 4 people. Instructions will be posted on blackboard. Please hand in a hardcopy (stapled printout will do) of your solution in class. Please do not send solutions by e-mail.

• MyFinanceLab assignments are individual practice exercises in MyFinanceLab (MFL), an online learning platform that accompanies the textbook. If you are using MFL for the first time make sure you do an (ungraded) sample test. It is also recommended to use the MFL platform to do additional practice exercises. MFL assignments will not be discussed in class. See the instructions on blackboard on how to register to MFL.

Final Examination

The final examination will take the form of a written, individual exam. Please see the course schedule for the date and venue. Sample exams from prior years can found online at blackboard. This year’s exam will take a similar format. There will be no multiple-choice questions. Attendance is mandatory (please see the MIF Rules & Regulations for further information). In case you do not obtain a passing grade for the course following the first written exam, you will have to take a retake written exam. In this case, the grades from the assignments mentioned above stay valid for the determination of the course grade. All final examinations, including the retake exam, will test the full course material. Please see the MIF Rules & Regulations for further information on grading.