EM365M73A1

Programme
PGE
Accounting and Auditing
UE
Corporate Finance
Semestre
A
Discipline
Finance
Volume horaire
22 H
Nombre de places
45
Ouvert aux visitants
Oui
Langue
EN
Responsable
Enrico PRINZ

Liste des intervenants

Intervenant(s) Email Volume horaire CM
Enrico PRINZ enrico.prinz@em-strasbourg.eu 22 h

Contribution pédagogique du cours au programme

LEARNING GOAL 1 : Students will master state-of-the-art knowledge and tools in management fields in general, as well as in areas specific to the specialized field of management.
Students will identify a business organization’s operational and managerial challenges in a complex and evolving environment.
Students will understand state-of-the-art management concepts and tools and use them appropriately.
Students will implement appropriate methodologies to develop appropriate solutions for business issues.
LEARNING GOAL 2 : Students will develop advanced-level managerial skills.
Students will participate in a decision-making process in a critical way.
LEARNING GOAL 4: Students will study and work effectively in a multicultural and international environment.
Students will demonstrate written and oral competency in two foreign languages.

Descriptif

The lecture aims to offer students a comprehensive overview about the complex investment and financing decisions of firms. After an introduction, class participants will deal with major investment decision methods and discuss their respective strengths and weaknesses. Will be presented, in a second step, techniques to transform accounting numbers into free cash flows. The chapter will be completed with an in-depth presentation of risk-princing methods and the estimation of a firm's cost of capital. The following chapter will be focused on capital structure decisions. After a recall of possible financing solutions, students will discover the assumptions of Modigliani & Miller in a perfect market. Based upon this knowledge, the scope of the financial leverage and its limits will be introduced and discussed in a next step whereas a particular focus will be set on the question of an optimal capital structure. The last part of the course adresses the question of value creation. Will be introduced and compared for this purpose the most frequently used performance indicators for measuring performance. The class finishes with a synthesis of possible payout policies and their consequences for shareholders. To bridge the gap between theory and practice, students will do a couple of exercises throughout the lecture and are expected to hand-in a group work based estimation of the cost of capital of a given corporation.

Organisation pédagogique

Face-to-face

- Lectures
- Tutorials

In group

- Exercises

Interaction

- Discussions/debates

Others

Aucun élément de cette liste n'a été coché.

Objectifs pédagogiques

Cognitive domain

A l'issue du cours, l'étudiant(e) devrait être capable de / d'...
  • - (niv. 2) Describe the key idea of corporate governance and explain its link to corporate finance.
  • - (niv. 2) Summarize the most frequently applied investment decision methods by focusing on their respective strengths and weaknesses.
  • - (niv. 3) Employ the net present value method by conducting a project's incremental earnings forecast and the transformation of it into free cash flow expectations.
  • - (niv. 3) Compute the cost of equity, cost of debt and cost of capital of listed firms by using their respective accounting / financial documentation and a spreadsheet software.
  • - (niv. 4) Compare a firm's major financing solutions under a risk-return perspective.
  • - (niv. 4) Point out the key determinants of the financial leverage effect and a firm's chosen capital structure.
  • - (niv. 5) Synthesize the most commonly applied indicators for measuring a firm’s value creation.
  • - (niv. 6) Evaluate possible payout policies from a shareholder wealth perspective.

Affective domain

A l'issue du cours, l'étudiant(e) devrait être capable de / d'...
Aucun affective domain n'a pour le moment été associé à ce cours.

Objectifs de développement durable abordés

Aucun objectif de développement durable n'a été coché.

Plan / Sommaire

I General introduction (½h) 1. Raison d'être of firms 2. Corpoate finance put in a nutshell II Investment decisions (10h) 1. Net present value method and internal rate of return 2. Alternative selection methods 3. Practice of capital budgeting or the transition from profit numbers to free cash flows 4. Risk pricing and cost of capital III Capital structure decisions (7h) 1. Funding sources and financing solutions 2. Capital structure in a perfect market 3. Market imperfections and limits of debt use 4. Optimal capital structure IV Value creation and payout policy (4h) 1. Measuring wealth creation for investors 2. Payout policy choices V General conclusion (½h)

Prérequis nécessaires

Connaissances en / Notions clés à maîtriser

- Fundamentals of accounting (Financial statements & related principles) - Fundamentals of corporate finance (Financing sources & underlying principles) - Basic knowledge in economics

Supports pédagogiques

Mandatory tools for the course

- Computer
- Calculator

Documents in all formats

- Photocopies

Moodle platform

- Upload of class documents

Software

Aucun élément de cette liste n'a été coché.

Additional electronic platforms

Aucun élément de cette liste n'a été coché.

Bibliographie recommandée

Ouvrages principaux

- BERK, Jonathan / DE MARZO, Peter / HARFORD, Jarrad (2014): Fundamentals of Corporate Finance, Prentice Hall, 3rd ed. (or previous editions) - HILLIER, David / ROSS, Stephen / WESTERFIELD, Randolph / JAFFRE, Jeffrey / JORDAN, Bradford (2016) : Corporate Finance, McGraw Hill, 3rd ed.

Littérature complémentaire

- BREALEY, Richard / MYERS, Stewart / ALLEN, Franklin (2013): Principles of Corporate Finance, McGraw Hill, 11th ed. - DAMODARAN, Asworth (2015) : Applied Corporate Finance, John Wiley & Sons, 4th ed.

Travaux de recherche de l'EM : Veillez à mobiliser au moins une ressource

Peuvent être renseignés les manuels coordonnés, les traductions de manuel, les études de cas traduites etc…
- none

Modalités d'évaluation

Liste des modalités d'évaluation

Evaluation intermédiaire / contrôle continu 1Autre (date, contrôle surprise...) :
Ecrite / en groupe / Anglais / pondération : 20 %
Précisions : Preparation of a written dossier based on the estimation of a firm's cost of equity, cost of debt and cost of capital (MS Word file for presentation, MS Excel file for computation). Dossier to be sent by mail until November, 24. Further details during first session.
Cette évaluation sert à mesurer LO1.2
Evaluation finaleAutre (date, contrôle surprise...) :
Ecrite (120 min) / individuelle / Anglais / pondération : 80 %
Cette évaluation sert à mesurer LO1.1, LO1.2, LO1.3, LO2.2
Aucune modalité d'évaluation n'a pour le moment été attribuée à ce cours.