Advanced Corporate Finance

FINC5880

Code

FINC5880

School

WGS

Description

This advanced study of corporate financial analysis and planning includes capital budgeting, cost of funds, and capital structure and valuation. Selected topics that may be covered are leasing, mergers, takeovers, business failure, reorganization, and liquidation. A combination of problem-solving and case study methodologies is used to illustrate theories and techniques helpful in financial analysis and planning.

Module Level

Module Code

FINC5880

Webster Code

FINC 5880

Class

EL|

Availability

DE|SA|

Available Summer

Credits

Contact Hours

Course Length (wks)

Learning Outcomes

Upon successful completion of this course, the student will be able to:

Outcome	Expectation
1. Students can determine the value of fixed income securities	Students can calculate the implied value of convertible securities as well as the value of bonds-with-warrants.
2. Students can analyze capital budgeting decisions using standard methodologies	Students can make capital budgeting decisions using cash flow estimates and incorporating other sources of cash, such as taxes and depreciation. Students can explain the impact of profit margin and overall firm profitability on capital budgeting decisions, particularly when outside financing may be required to be able to complete projects.
3. Students can explain the impact of capital structure decisions on financial performance and cost of capital	Students can determine the impact of changes in cost of equity, cost of debt, the risk-free rate of interest, the tax rate, and the levels of debt and equity on the firm’s balance sheet on the overall cost of capital and the effect on both project and firm profitability.
4. Students can utilize financial analysis to assess an organization’s financial condition	Students can apply ratio and financial statement analysis skills to solve unstructured problems.
5. Students can construct strategies to reduce risk utilizing derivatives	Students can compute payoffs to put and call contracts and value corporate projects using the real option approach.
6. Students demonstrate integration of more than one area of finance when using case studies.	Students can solve cases requiring integration across various finance areas.
7. Students will demonstrate knowledge of lease analysis.	Students can compare the value of leasing to that of purchasing.

Pre-Requisites

FINC 5000

Course Conduct

Academic Honesty
The university is committed to high standards of academic honesty. Students will be held responsible for violations of these standards.

Attendance

Students are expected to attend ALL class sessions of EVERY course. In the case of unavoidable absence, the student must contact the instructor. The student is subject to appropriate academic penalty for incomplete or unacceptable makeup work, or for excessive or unexcused absences. Generally, a student who misses more than one four-hour course period (per course) without a documented excuse (such as illness) and advanced permission from the instructor should withdraw from the class.

This means:

You may not miss the first 2 weeks of any class and expect to continue in that class. If you have begun a class, and subsequently have 2 absences, we will call you in and you may be asked to withdraw. Your student visa status may be affected.

Weekly Schedule

Full syllabus provided during the first lecture.