This class exists in these courses :
• IÉSEG > MSc in Finance > Semester 1 > 2,00 ECTS

Prerequisites

None. But students should be comfortable with algebra and have basic knowledge in accounting.

Learning outcomes

At the end of the course, the student should be able to :
1. solve professional dilemmas using concepts of CSR and ethics;
2. generate sustainable solutions for organizations;
3. predict how business and economic cycles could affect organizational strategy;
4. employ state-of-the-art management techniques;
5. analyze how corporate governance and compensation incentives affect value creation for shareholders;
6. differentiate between business and financial risks and explain how they affect the firm's performance;
7. explain how firms can structure their capital to finance their activities;
8. describe and apply the common techniques in working capital management;
9. evaluate various dividend payout policies and their impact on shareholders' value.

Course description

This course examines several areas of corporate finance that directly affect value creation for shareholders. We will start with a discussion of the corporate governance system. Next, the significance of long term capital structure will be thoroughly explored in light of Modigliani and Miller's fundemantal research. In a modern corporation a significant amount of money is tied up in working capital, the lectures will also examine short term financial policies. Finally, the course will discuss various dividend theories and policies in relation to their likely impact on the company's share price.

Class type

Class structure

Teaching methods

• Case study
• Interactive class
• Seminar

Assessment

Each student's final course grade is determined by two assignments that must be completed after class during the course and a mini-case report to be emailed to me 10 days after completing the course.

Recommended reading

• Corporate Finance by Ross, Westerfield and Jaffe, 10th ed. (2013), McGrawHill (in class materials and slides are based on this book). -

• Intermediate Financial Management by Brigham and Daves, 11th ed. (2013), Cengage. -

• Applied Corporate Finance by Aswath Demodaran, 4th ed. (2014), Wiley. -

Internet resources

• IESEG Online

  Slides will be posted on intranet one week before class.