Motivation of the course Total Value of Assets: Cash management
Total Firm Value to Investors: Current Liabilities
Current Assets
Long-Term Debt Project evaluation
DebtEquity trade-off
Fixed Assets 1 Tangible Shareholders’ Equity
2 Intangible
Eric Jondeau
EMBA
5/9
Corporate Finance
Motivation of the course Finance Fundamentals
Effect of financing on
(Project valuation under certainty)
project valuation
Effect of risk and
- Financing decisions
Leverage on project valuation
Debt/equity trade-off - Dividend policy New investment/dividend trade-off
Eric Jondeau
EMBA
6/9
Corporate Finance
Outline of the course 1. Risk, Cost of Capital, And Capital Budgeting (October 19) 2. Efficient Capital Markets, and Long-Term Financing (October 20) 3. Capital Structure: “Modigliani and Miller” (November 3) 4. Capital Structure: Limits to the Use of Debt (November 3) 5. Capital Budgeting: For the Levered Firm (November 16) 6. Dividends and Other Payouts (November 17)
Eric Jondeau
EMBA
7/9
Corporate Finance
Grading Evaluation will be based on Group work and the Exam -
Group work: 40% of total grade (3 assignments)
-
Exam: 60% of total grade
Eric Jondeau
EMBA
8/9
Corporate Finance
Reading Lectures will be based on the textbook by Ross, Westerfield, and Jaffe, Corporate Finance, (2002, 6th edition) McGraw
Hill.
Other corporate finance “bible”, Brealey and Myers, Principles of Corporate Finance, (2002, 7th edition) McGraw