Chiptle Share Infor

Course Description

We will use Finance concepts and tools to deal with applied Corporate Finance issues. Since you are already familiar with the material from core Finance courses (capital structure, valuation, CAPM, option pricing, etc.), we will mainly focus on practical applications to real business cases, discussing the usefulness, but also the limits of these concepts/tools.

The course has three parts:

• Sessions 1-5 (Hillion) deal mostly with company valuation methods and issues in various business situations.

• Sessions 6-8 (Hillion) focus on the use of derivatives in corporate finance such as in M&A

deals, etc.

• Sessions 9-16 (Vermaelen) focus on issues related to the financial policy of corporations: financial forecasting, sources of finance, financing and capital structure decisions, etc.

Readings

Brush up your FMV and CFP class notes. Other readings are in the course pack.

Preparation for class

The course’s success relies on class discussions, particularly those centered on case studies. Therefore, you should prepare for class by going through the case and readings, and making a serious attempt at answering the assignment questions so that you can join in class discussions.

Course Requirements/Grading

Group Case Write-ups: 50 %

Participants must form teams of 3 or 4 by the end of the first day of class. Each team is to prepare at least 5 case write-ups in total with at least 2 from sessions 1-5, 1 from sessions 6-8 and 2 from sessions 9-16. These are typewritten reports (double-spaced) of no more than 3 pages + 3 pages of exhibits (6 pages total).

Class participation: 50%

All participants are expected to have read the case before class, even those not preparing a write- up, and to join in discussions. It is important that you attend all classes. Please, bring your name cards so you can get credit for participation. Preparing for class is a must. Your input will be evaluated in terms of how it helps move the discussion forward.

Course Outline

1. Valuation (Sessions 1-5, Professor Pierre Hillion)

Session 1: Lecture: Cost of capital

Session 2: Marriott Corporation (WACC)

Session