ADVANCED CORPORATE FINANCE 1640

Master Course
Academic Year 2020-2021
Course Design

• 9 sessions -2h40’ spaced by a week or so.

• 3 ECTS - 24 contact hours, 75h total student workload.

Course Objectives
This course is a continuum of the Bsc 3 Corporate Finance course.

At the end of the course, students should be able to:

• Apply modern financial theory to the investment, financing and payout policy of a corporation
• Generate creative and practical solutions by applying decision tools and structured
methodology
• Demonstrate professional written communication skills

Course Content Guidelines

This content follows the general framework taught in many prominent business schools, including NY
Stern School of Business (Aswath Damodaran course).

In designing the content, we aimed at avoiding overlap with Bsc3 Corporate Finance course, rather
trying to deepen the knowledge taught there and also avoid repeating concepts taught in other major
courses at the Msc Level.

Course Outline
The Investment Decision (Invest in assets that earn a return greater than the min acceptable hurdle rate)
• The hurdle rate as a measure of the riskiness of the investment
• The return as a reflection of the magnitude and timing of the cash flows

The Financing Decision (Find the right mix of debt and equity)
• The optimal mix as a way to achieve maximization of firm value
• The right level and nature of debt to fit to the purpose

The dividend policy (as a measure of cash returned to shareholders)

• How much cash to return to shareholders
• How you choose to return this cash to shareholders

Course Detailed Content

Content session 1 – Management Goals and Corporate Finance – an overview

Content session 2 - Risk and Return Models
Content session 3 – Estimating Hurdle Rates
Content session 4 – Measuring Return on Investments
Content session 5 – Dealing with Side Costs and Benefits
Content session 6 – Capital Structure Choices and Optimum
Content session 7 – Debt Design
Content session 8 – Dividend Policy
Content session 9 - Assess Cash returned to Shareholders

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Course Additional Resources
Pages

http://www.stern.nyu.edu/~adamodar/New_Home_Page/cflect.htm

Applied Corporate Finance: A User’s Manual (Fourth Edition)

http://www.stern.nyu.edu/~adamodar/New_Home_Page/ACF3E/appldCF3E.htm

Data

http://www.stern.nyu.edu/~adamodar/New_Home_Page/data.html

Spreadsheets

www.stern.nyu.edu/~adamodar/New_Home_Page/spreadsh.htm

http://www.stern.nyu.edu/~adamodar/New_Home_Page/cfprob0.html

Quizzes

http://www.stern.nyu.edu/~adamodar/New_Home_Page/cfprset.htm

Students assigned work and assessment rules

Students will be evaluated through a final term exam representing 60% of the total grade.

Beside personal work, students will be assessed through a comprehensive project (40% of the grade) to be
completed at the end of the course.

PROJECT : Strong suggestion is to start to pick a company up NOW following the guidelines set in the
slider specifically aimed at describing the outline and content of the project on Ieseg on line. Form your
own groups and indicate which group you belong to on the shared XLS.

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