Checking date: 11/05/2018


Course: 2018/2019

Corporate Finance
(15909)
Study: Master in Finance (261)
EPE


Coordinating teacher: TRIBO GINE, JOSE ANTONIO

Department assigned to the subject: Department of Business Administration

Type: Compulsory
ECTS Credits: 3.0 ECTS

Course:
Semester:




Students are expected to have completed
Financial Economics Financial Statement Analysis
Competences and skills that will be acquired and learning results.
Students will develop the basic skills to value companies, focusing on the main concepts and methodologies: weighted average cost of capital, capital structure, comparables methodology and DCF methodology. Additionally they will get familiar with the basic concepts impacting valuations and transaction structuring from a corporate finance viewpoint: synergies, control premium, hybrid securities, etc.
Description of contents: programme
1) Main concepts in Finance 2)The cost of capital and capital structure -2.1. The cost of capital and WACC -2.2. Modigliani and Miller propositions -2.3. The Trade-off theory -2.4. The Pecking Order theory -2.5. Main empirical studies 3)Introduction to valuation 4)Comparables methodology 5)DCF methodology 6)Valuation in a M&A context 7)Financial instruments most widely used in Corporate Finance
Learning activities and methodology
1) Slides and class discussions: theory and main concepts 2) Practical cases contained in the slides will be used as examples to facilitate learning 3) The two case studies which account for 50% of the final grade will be worked out in class the week after the delivery date to consolidate the key take-aways 4) As regards the two case studies, students will work in teams
Assessment System
  • % end-of-term-examination 50
  • % of continuous assessment (assigments, laboratory, practicals...) 50
Basic Bibliography
  • DAMODARAN, A.. Investment Valuation (http://pages.stern.nyu.edu/~adamodar/)). Wiley. 2006
  • GRINBLATT, M., & TITMAN, S. . Financial Markets and Corporate Strategy. Irwin/McGraw Hill, Boston.. 1998
Additional Bibliography
  • Harris, M. and Raviv, A.. The theory of capital structure. The Journal of Finance. 1991
  • John R. Graham, Campbell R. Harvey. The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics. 2001

The course syllabus and the academic weekly planning may change due academic events or other reasons.