Face-to-face , second term, 45 hours of theory.

Second term
Monday from 09:00 to 10:30 at 119 Marais 2100
Tuesday from 10:45 to 12:15 at 119 Marais 2100

English

The aim of the course is to provide an insight in the major concepts and techniques in finance and corporate finance. These concepts and techniques should allow students to set objectives of financial management and solve problems in financial management.
The course discusses how to take investment decisions and also looks at ways to finance the firm. Students will learn to make capital budgeting decisions, determine the value of the firm, understand the Capital Asset Pricing Model and its importance in calculating the cost of capital. Capital structure implicatoins and pay-out policies will also be discussed.

For the Bachelor in Business Engineering :

For the Bachelor in Economics and Management :

None

This course aims at familiarising students with general principles of corporate finance. A particilar focus is giving to capital budgeting techniques, risk and return, the CAPM and the cost of capital. Capital structure implications to the value of the firm are also discussed, together with payout policy and financial distress.


Introduction :
The Corporation, financial decision making and the law of one price
Valuing projects and firms :
Investment decision rules and Fundamentals of capital budgeting

Risk and return :
Capital markets and the pricing of risk ; Optimal portfolio choice and CAPM ; Estimating the cost of capital ; Investor behaviour and capital market efficiency
Capital structure :
CS in a perfect market ; Debt and taxes ; Financial distress ; Payout Policy
If time allows : Capital budgeting and valuation with leverage

The lecture
During the lectures the theoretical concepts will be explained. Examples and exercises will be integrated in the lectures. Students are encouraged to participate to class, answering to questions that will be raised.

This course will be assessed based on :
1) a one hour exam during which the knowledge of the theoretical concepts (tested during a 20 minute oral exam- 40% of the final mark) as well as the ability of the student to solve problems (tested during a 40 minute written exam - 40% of the final mark) will be evaluated.
2) A group assignment, that will make up 20% of the final mark.

Corporate Finance: The Core, 4th Edition, Jonathan Berk, Stanford University, Peter DeMarzo, Stanford University, ©2017 Pearson

In class lectures (45 hours of theory with integrated exercises).

On the university's electronic platform the following additional information will be offered:
- a copy of the slides used in class
- the exercises that will be solved during class. Additional exercises will be added (partially with solutions).