Courses

F546

Corporate Financial Strategy

  • 7-weeks
  • 1.5 credits
  • Prerequisite: F540

This course examines how corporate and financial strategies can lead to the creation and maintenance of shareholder value. Value transfer and destruction are also explored. Numerous examples are used to illustrate the practical application of strategies and to examine the role of key value drivers. The issues of effectively communicating strategies to the financial markets and providing incentives to create value are also explored.

  • The value cycle: creation, transfer, and destruction of shareholder wealth
  • The role and interplay of key value drivers
  • Corporate and divisional costs of capital and their use in capital budgeting
  • Forecasting free cash flow
  • Alternative firm valuation models
  • Formulating a financial strategy to support the corporate plan
  • Option pricing applications: valuing warrants, convertibles, rights offerings, etc.
  • Incentives and financial communication

Course Materials: Copeland, Koller, and Murrin, Valuation: Measuring and Managing the Value of Companies. Bruner, Case Studies in Finance: Managing Corporate Value Creation.The course will rely heavily on cases to explore the theme of value creation. Other grading instruments will be a valuation project and exams.