Description
This course will give you the skills necessary to make sound financial and investment decisions by providing you with a deep exposure to the determinants of financial decision-making.
Type Subject
Tercer - Obligatoria
Semester
First
Course
3
Credits
5.00

Titular Professors

Salma Lemkhente
Professor
Previous Knowledge
Objectives

This course will assist you in learning:

The framework for valuation (including, as special cases, valuation of stocks and bonds, and evaluation of investment opportunities).

The different decision rules used to evaluate financial impact of projects.

The concepts of risk and return and identification of opportunity cost of capital.

To understand how financial markets work and why they sometimes fail.

To evaluate a firm’s financial decisions in a coherent framework of value-creation.

The alternative sources of external funding for company operations.

Contents

Topic I – Introduction to Corporate Finance.

Topic II – Valuation and Overview of Corporate Financial Instruments.

Topic III – Risk-Return and Opportunity Cost of Capital.

Topic IV – Capital Budgeting Decision.

Topic V – Company Valuation.

Topic VI – Financing Decision: Debt-equity choice.

Topic VII – Convertibles, Warrants and Derivatives.

Methodology

In order to provide the students with the best theory-practice mix, the sessions will be illustrated with examples and completed by exercises of application.

Evaluation

The grading in this course is broken down to these four assessments:

1. Behaviour and Participation 10%

2. In class Quizzes 20%

3. Mid-term Exam 35%

4. Final Term Exam 35%

Evaluation Criteria
Basic Bibliography

The course material (slides, exercises…) will be uploaded on the school e-study on a weekly basis.

Additional Material

For additional readings, these following books are strongly recommended:

“Principles of Corporate Finance”, 9th Edition, Richard A. Brealey, Stewart C. Myers, Franklin Allen.