1. To analyze the company`s performance from a view of corporate finance
2. To choose the optimal capital structure
3. To assess corporate financial architecture
4. To apply different financial metrics to understand the life cycle of companies
In the first week, we will review financial instruments, financial markets, and financial systems. We will find out why we need to evaluate assets and how to evaluate assets. In addition, this week will address the concept of a perfect market and the law of one price, as well as the imperfection of the financial market.
Learn about the methods to identify the LCO stage by financial data and value creation at different LCO stages. You will gain insights into the role of non-financial data in financial analytics and learn more about living (knowledge) firms.
Learn about capital structure and how it differs from financing mix; financial leverage and the benefits of debt. You will understand how to measure the benefits of debt and the cost of financial distress; what do key empirical findings say about the trade-off theory.
Learn about signaling effects, adverse selection models, and the window of opportunity. You will learn if agency costs matter for capital structure choices and how stakeholder approach to the firm impacts the capital structure choices. Specifically, you will focus on capital structure decisions in the “knowledge firms” and "magic" of debt financing.
You will learn about the differences between Integrated and segmented capital markets and why we should differentiate between them. You will become familiar with the Global (World) capital asset pricing model (GCAPM) as compared to the Local capital asset pricing model; sovereign risk and the methods of adjustment; Hybrid capital asset pricing models (HCAPM).
You will learn why firms need to care about tax clientele and how clientele influences payout policies. You will also learn about the measures for share repurchases; the adjustments by dividend-forecast error and the determinants of corporate payout policies studies in a new economy.
In the lectures, you will learn about the practical application of financing concepts from the course. You will gain insight into investments and the role of NPV & IRR concepts in investment decisions. You will also gain an understanding of tools for dealing with uncertainty.
The Final Project encapsulates the whole range of topics reviewed in this Corporate Finance Course. You are required to apply the skillset as a specialist and analyze the company. In the process, you should give an exhaustive explanation of all the steps.