Corporate Finance (FINA0050) 2023 Introduction - VF

Corporate Finance
Lectures and Seminars
M. Lambert
Corporate Finance: Lectures and Seminars, HEC Liège 2023-2024 – Marie Lambert 1
Corporate Finance
Introduction
Course objectives
Course outline and agenda
Practical information and evaluation
Corporate Finance
• Corporate finance theory deals with all the

decisions that a business can make and that could
have an impact on the firm value
• Every decision that a business makes has financial

implications, and any decision which affects the
finance of the firm is a corporate finance decision
Value creation:
the Balance Sheet model of the firm
Working
capital Current liabilities
Current assets
Long-term
liabilities
Fixed assets :
1. Tangible fixed
assets Shareholders’
2. Intangible equity
fixed assets
Ross, Westerfield and Jaffe, 8th edition
Corporate Finance in 4 questions
• In what long-lived assets should the firm invest?

Capital budgeting/Investing decisions
• How can the firm raise cash for its required capital
expenditures? Financing decisions and capital
structure
• How should short-term operating cash flows be
managed? Timing of cash flows and short-term
financing decisions
• How should the distribution of cash to shareholders
be managed? Dividend policy and stock repurchases
• In what long-lived assets should the firm invest? Capital
budgeting/Investing decisions
expenditures? Financing decisions and capital structure
• How should short-term operating cash flows be managed?

Timing of cash flows and short-term financing decisions
• How should the distribution of cash to shareholders be

managed? Dividend policy and stock repurchases
Objective: value creation

à Maximizing firm value versus shareholder wealth
Objective function of a business firm
• Business firms
Firms which are publicly traded vs. private firms
• Stock price maximization, stockholder wealth

maximization, and firm value maximization
Corporate Finance
Introduction
Course objectives

managed? Timing of cash flows and short-term financing
decisions



managed? Timing of cash flows and short-term financing
decisions


Corporate Finance
Introduction
Course objectives
Schedule
• Lecture 1: September 21st (9.00 AM – 12.00 PM)
Introduction // Block 1: Fundamentals // Block 2: Financial analysis
• Lecture 2: September 28th (9.00 AM – 12.00 PM)

Block 2: Financial analysis (end) // Block 3: Free Cash Flows to the
Firm
• Lecture 3: October 5th (9.00 AM – 12.00 PM)

Block 4: Cost of capital – part A
Please complete Blocks 1 to 3 quizzes by October 5th at the latest to be

accounted for in your continuous evaluation!
Schedule
Block 4: Cost of capital – part B

Blocks 1 to 4: Exercise session 1

Block 5: Discounted Cash flow (finite and infinite life) // Block 6: Firm
valuation
Please complete Blocks 4 to 6 quizzes by November 9th at the latest to be

Schedule
• Lecture 7: November 16th (9.00 AM – 12.00 PM)

Block 7: Capital Budgeting: NPV
• Lecture 8: November 23rd (9.00 AM – 12.00 PM)

Block 8: Alternative investment rules
Block 9: Corporate Finance at work
• Lecture 9: December 7th (9.00 AM – 12.00 PM)

Blocks 5 to 8: Exercise session 2
• Lecture 10: December 14th (9.00 AM – 12.00 PM)

Wrap up and exam preparation
Please complete Blocks 7 and 8 quizzes by November 30th at the latest to be
Seminars
(Distance learning)
• Distance learning: see instructions on lol@

– Seminar 1: Financial Analysis
– Seminar 2: Forecast and Due Diligence
– Seminar 3: Cost of Capital
– Seminar 4: Valuation
– Seminar 5: Capital Budgeting
--------------------------------------------------------------------------------------
Deadline for completing the digital seminars
• Seminars 1 – 2: 5th October 2023
• Seminars 3-4: 9th November 2023
• Seminar 5: 30th November 2023
Remediation
• 4 sessions on Fridays
Q&A sessions
– 6th October from 1.30 PM onwards
– 10th November from 1.30 PM onwards
– 1st December from 1.30 PM onwards
– 15th December from 1.30 PM onwards
• Wrap up
– Quizz to be completed by December 11th, 9.00 AM
– Solutions online on December 11th PM to be prepared for the Q&A
Session on Thursday December 14th (9.00 AM – 12.00 PM)
Corporate Finance
Introduction
Course objectives
Corporate Finance
Introduction
Course objectives
General information
• Textbooks:
- Hillier, Grinblatt &
Titman, Financial
Markets and
Corporate Strategy,
McGraw-Hill,
European Edition
- Equity Valuation,
Wiley
General information
• Professor:
• Teaching assistant:
alexandre.scivoletto@uliege.be
Readings (Grinblatt and Titman)
• Mandatory readings:
- Chapters 9, 10, 11 and 13
• Prerequisites: Financial Market Theory

- Recommended readings: Chapters 2, 3, 23, 4 & 5
Evaluation
• Final written exam (75%)

• Continuous evaluation (25%)
– End of block quizzes (same deadline as for the seminars)
– Seminar tutorial and excel. Quizzes on seminars
Grading criteria: to be accounted for the continuous
evaluation, it needs to be done individually, seriously (no
random selection of answers, quiz to be completed in one
« go », in a reasonable time, not copying the answers from
your colleagues) and …on time! Check out the deadlines !
Pedagogic commitments
• Please read the pedagogic commitments

following this link
https://www.programmes.uliege.be/cocoon/2
0232024/en/cours/FINA0050-1.html
Information about the course content, evaluation,

textbook….
Student toolbox
• A forum has been created on lol@. Please ask there the

questions (in the appropriate category) you could have
regarding the course and check whether the questions has
not already been asked.
• Connect to the interactive platform “Wooclap” (by sms or
internet link) for answering concept checkers during the
course!
• Quizzes online (on lol@) to exercise for the exam!
• Remedial session

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Corporate Finance

Lectures and Seminars

• Corporate finance theory deals with all the

• Every decision that a business makes has financial

Ross, Westerfield and Jaffe, 8th edition

• In what long-lived assets should the firm invest?

• How should short-term operating cash flows be managed?

• How should the distribution of cash to shareholders be

Objective: value creation

• Stock price maximization, stockholder wealth

• How should short-term operating cash flows be

• How should the distribution of cash to shareholders be

Objective: value creation

• How should short-term operating cash flows be

• How should the distribution of cash to shareholders be

Objective: value creation

• Lecture 2: September 28th (9.00 AM – 12.00 PM)

• Lecture 3: October 5th (9.00 AM – 12.00 PM)

Please complete Blocks 1 to 3 quizzes by October 5th at the latest to be

• Lecture 5: October 19th (9.00 AM – 12.00 PM)

• Lecture 6: October 26th (9.00 AM – 12.00 PM)

Please complete Blocks 4 to 6 quizzes by November 9th at the latest to be

• Lecture 7: November 16th (9.00 AM – 12.00 PM)

• Lecture 8: November 23rd (9.00 AM – 12.00 PM)

• Lecture 9: December 7th (9.00 AM – 12.00 PM)

• Lecture 10: December 14th (9.00 AM – 12.00 PM)

• Distance learning: see instructions on lol@

• Prerequisites: Financial Market Theory

• Final written exam (75%)

• Please read the pedagogic commitments

Information about the course content, evaluation,

• A forum has been created on lol@. Please ask there the

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