Advanced Corporate Finance

Teacher(s)

Thewissen James (compensates Zhang Yue); Zhang Yue;

Language

English

Main themes

This course provides a comprehensive overview of the theory and practice of decision-making within the corporation. It is taught primarily through lectures, case studies and presentations. We will study important concepts in corporate finance, and develop skills for making corporate investment and financing decisions. The concepts and skills will be applied into practice through case studies.

Aims

At the end of this learning unit, the student is able to :
1	Upon completion of this course, students are expected to complete the following key tasks: Have a good understanding of important issues in corporate finance; Have a good understanding of business ethical values; Be able to apply concepts and tools learned in class; Upon completion of this course, students are expected to develop the following capabilities: Corporate citizenship; Communication and Interpersonal skills; Critical thinking skills; Teamwork and leadership.

Content

The following topics will be covered:

1. Management objectives

1.1 Choosing the right objective
1.2 The classical objective
1.3 Maximize Stock prices
1.4 Alternatives to stock price maximization

1. Risk and return models

2.1 Motivation and perspective in analyzing risk
2.2 Equity risk and expected returns
2.3 The risk in borrowing
2.4 Measuring return on investments

1. Capital structure

3.1 The choices : Types of financing
3.2 Financing behavior
3.3 The process of raising capital
3.4 The trade -off of debt
3.5 Optimal capital structure

1. Valuation and firm value

4.1 Discounted cash flow valuation
4.2 Relative Valuation
4.3 Reconciling different valuations

1. Dividend decision

5.1 Background on dividend policy
5.2 The “dividends are bad” school
5.3 The “dividends are good” school

Teaching methods

Due to the COVID-19 crisis, the information in this section is particularly likely to change.

Lectures, Case Studies, Presentations

Evaluation methods

Due to the COVID-19 crisis, the information in this section is particularly likely to change.

Continuous evaluation

• Date: No
• Type of evaluation: Assignment, Case Study, Presentation, Report
• Comments: No

Evaluation week

• Oral: No
• Written: No
• Unavailability or comments:

Examination session

• Oral: No
• Written: No
• Unavailability or comments:

Bibliography

1. Applied Corporate Finance (Fourth Edition) by Aswath Damodaran
2. Slides posted in Moodle

Faculty or entity

CLSM