Applied Corporate Finance
Program:
First Offered:
Typical Enrollment:
Credits:
Type:
Bachelor of Science (B.Sc.) in Finance
Fall Term 2017
~60
3
Core
The course covers the most important topics in Corporate Finance on an intermediary level in a case-based way. Purpose is to introduce students to 'real-life' Corporate Finance. The course dissects a variety of funding-, investment-, payout-, and restructuring decisions in major corporations, with respect to their motivations, execution and financial implications. Students apply existing knowledge and acquire new 'applied' skills by working through the cases. As each chapter covers a different case involving a different company, students are also exposed to a variety of industries, business models, and the intermediaries (such as banks) involved in the examined transactions.
Selection of Covered Topics
Shareholder Value Maximization
Corporate Governance and 'ESG'
Financial Forecasting
Investment Evaluation
Project Valuation
Cost of Capital
Capital Structure
Payout Policy
Mergers & Acquisitions
Initial Public Offerings
Textbook(s):
'Corporate Finance'
By Berk and DeMarzo. Pearson.
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'Damodaran on Valuation'
By Damodaran. Wiley.
Excel
Modeling
Course
Simple exercises and examples in Excel on valuation and cost of capital calculations
Description of Sample Slides
Lecture:
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Class 11: Initial Public Offerings
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This sample lecture covers Initial Public Offerings (IPOs), using a variety of exemplary cases such as Dropbox, Uber, and WeWork.
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It covers the IPO process, the basic motivations behind going public, and the legal and economic consequences of becoming a stock-listed corporation. Emphasis is placed on the valuation and pricing dynamics throughout the pre-IPO, bookbuilding, and post-IPO lockup periods, particularly the underpricing phenomenon.
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Besides the 'textbook'-knowledge, students are exposed to original IPO prospectuses to gain an understanding about the way companies communicate with public market participants (e.g. the 'Equity Story').
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All pre-IPO share pricing data originate from my research on mutual funds' share pricing of privately held companies.
See Sample Slides Below
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