Course overview
This course examines techniques and issues in corporate finance with a focus on corporate investment decisions. The course covers both internal and external corporate growth strategies: advanced capital budgeting techniques, risk management strategies, valuation of capital projects as real options, merger and acquisition strategies, corporate diversification and divestitures. Further topics include stock valuation along with recognition of growth opportunities, relation between growth opportunities and free cash flow and agency cost of free cash flow, incentive-aligning compensation including executive stock options, corporate governance and ethical principles in finance industry.
Course learning outcomes
- Apply percent of sales approach to identify external financing needed at a given growth rate, and use formulas and pricing models to measure growth opportunities
- Employ various capital budgeting techniques in decision-making
- Apply option pricing models including real options methods, to evaluate corporate investments
- Utilise leading techniques in valuation of merger and acquisition strategies
- Analyse corporate investment decisions in the context of corporate diversification and corporate governance
- Identify and apply ethical principles relevant to the finance profession