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

Second term
Wednesday from 10:45 to 12:15 at 119 Marais 3100
Thursday from 10:45 to 12:15 at 119 Marais 3100

English

Students will be able to identify and define the major concepts in corporate finance. They will understand and explain basic techniques in finance and corporate finance. Applying the concepts and techniques will allow students to set objectives in financial management and to solve problems in financial management (e.g. making capital budgeting decisions).

For the Bachelor : Business Engineering :

For the Bachelor in Economics and Management :

None

This course aims at familiarizing students with general principles of corporate finance. A particular 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 behavior and capital market efficiency
Capital structure :
CS in a perfect market ; Debt and taxes ; Financial distress ; Payout Policy
Capital budgeting and valuation with leverage

The lecture
During the lectures the theoretical concepts will be explained. Examples will be integrated and demonstrated in the lectures. Some of the lectures will be dedicated to exercises, during which students will need to solve financial problems. Students are encouraged to participate to class, answering to questions that will be raised (e.g. using Wooclap).

This course will be assessed based on :
1) a one hour exam during which theoretical concepts will need to be defined and explained (tested during a 20 minute oral exam- 40% of the final mark) corporate finance problems need to be solved (tested during a 40 minute written exam - 40% of the final mark).
2) A group assignment in which the theoretical concepts will need to be applied and calculations will need to be (20% of the final mark).

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

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).