Advanced Corporate Finance
Etablissement : Faculté de Gestion, Economie & Sciences Masters
Langue : Anglais
Formation(s) dans laquelle/lesquelles le cours apparait :
Période : S4
This course develops tools and mechanisms to analyze company’s decision-making process regarding capital structure, business models, risk management and asset valuation. It provides students with methods to gain in-depth understanding of companies’ valuation in various business contexts.
The course adopts a managerial perspective, with lectures supported by real-life case studies.
The aim of this course is to:
- Develop the ability to understand, critically analyze and evaluate the economic context and its role in the business environment of the company.
- Provide students with tools to analyze company’s capital structure: cost of capital, factors affecting capital structure, Modigliani-Miller propositions, optimal capital structure
- Explore the role of business models on company performance: defining business models, business models types, business models and company value creation.
- Develop methods for firm valuation: accounting approach, discounted cash flow, multiple approach, sum of the parts methods.
Module 1: Capital Structure and Policies
- Capital structure policies: equity and debt policies
- Cost of capital: cost of debt, cost of equity, weighted average cost of capital
- Factors affecting capital structure: determinants of amount and types of financing needs, determinants of cost of debt and equity
- Modigliani-Miller propositions : MM proposition I, financial leverage biais, optimal capital structure
- Case study
Module 2: Business Models Analysis
- Defining business model: business model features, pricing and revenue models, value proposition (who-what-how much).
- Business models’ types: conventional business models, business
- Business model innovation, network and platform business models
- Case study
Module 3: Principles of Valuation
- Cost based versus Income based methods
- Valuation tools: earning indicators, cash flow calculation,
- Equity valuation, concepts and tools: book value, liquidation value, market value, intrinsic value, market price, value estimate,
- Case study
Module 4: Firm Valuation in Practice
- Asset valuation approaches: asset-based valuation models, book valuation models, sum of the parts models
- Income valuation models: Dividend Discount Model (DDM), Discounted Cash Flow (DCF)
- Market approach: multiple models, comparability analysis
- Case study
