Corporate Finance - HEC

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Corporate Finance. EMBA in Management & Finance ... Corporate Finance. Investment ... Ross, Westerfield, and Jaffe, Corporate Finance,. (2002, 6th edition ) ...
EMBA in Management & Finance

Corporate Finance

Eric Jondeau

EMBA in Management & Finance

Introduction

Eric Jondeau

Corporate Finance

Motivation of the course Finance Fundamentals

How to evaluate a project?

Corporate Finance

Eric Jondeau

How to evaluate a financial asset?

Investment

EMBA

3/9

Corporate Finance

Motivation of the course Total Value of Assets:

Total Firm Value to Investors: Current Liabilities

Current Assets

Long-Term Debt Fixed Assets 1 Tangible Shareholders’ Equity

2 Intangible

Eric Jondeau

EMBA

4/9

Corporate Finance

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

Eric Jondeau

Hill.

EMBA

9/9