At a glance
The state of a company’s health is measured by its numbers. You’ll learn to interpret financial statements and communicate figures to investors, managers and other stakeholders over this key part of the programme.
The course emphasizes the basic principles of corporate finance and provides the conceptual frameworks necessary to assist you in making value creating decisions. Almost every decision taken by a firm has financial implications, no matter what functional area is involved. Therefore, the course has the ingredients to be of interest to any student. The two main financial decisions that firms face are: where to invest in? And how to finance investments?
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SOPHIE MANIGART: Well, the main purpose of a Corporate Finance course is to demystify the strange world and complex world of finance. So we'll delve into corporate finance decision, mainly investment decision and financing decision, which then culminate in the value of a company.
Approach to learning
To provide a thorough understanding of the accounting function and its link with the real economy in the context of international financial markets.
The objective of this course is to provide you with a solid knowledge of the fundamental concepts and tools in financial management that allow individuals to intelligently solve practical business problems. There will be a strong emphasis on applicability, so we will show how to apply those concepts and tools to the real world and real companies.
You’ll complete a thorough valuation of a quoted company of your choice as a group project. Based upon an in-depth analysis of the financial history of the company, you’ll develop a forward looking model that will enable you to value the company and decide on whether it’s a good idea to buy or sell shares of your focal company.
During the Corporate Finance course you will examine:
- How the financial situation of a company is analysed, focusing on its profitability, liquidity and solvency working capital management
- Company’s management of working capital, i.e. their short-term investments in the operational cycle
- Evaluation of capital expenditure (or long-term investment) decisions in relation to the value creation criterion
- Financing polices
- Financial structures of companies including mergers and acquisitions
- The relation between return and risk
- Firm valuation methods integrate foregoing concepts and techniques.
Knowledge into action
At the end of this course, participants will be able to:
- Interpret financial statements and reports to evaluate firms’ financial performance and risk
- Apply the cash conversion cycle to develop optimisation strategies for company performance
- Compare, evaluate and construct different capital budgeting evaluation models
- Calculate equity, debt and weighted average cost of capital
- Choose between different financing sources
- Review, analyse and assign appropriate payment and financing structures for merger & acquisitions transactions
- Apply proper valuation methodologies when preparing a bid
- Write an analyst report valuing a publicly quoted company
- Critically analyse the financial press