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| FINA0002-1 | Corporate Finance
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| Duration : | 30h Th |
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| Credits/ECTS : |
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| Holder(s) : | Laurent Bodson, Séverine Plunus, Danielle Sougné |
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| Language : | Langue anglaise |
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| Course contents : | 1. Underlying Philosophy
The course is organized around two important themes:
A. The Valuation and Capital Budgeting for the Levered Firm.
B. Options and Corporate Finance |
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| Course objective : | 2.Organization and Content
This course is composed of 4 lectures: 3 chapters
Chapter 1: Valuation and Capital Budgeting for the Levered Firm
1 Adjusted Present Value (APV) Approach
2 Flow to Equity (FTE) Approach
3 Weighted Average Cost of Capital (WACC) Method
4 A Comparison of the APV, FTE, and WACC Approaches
5 Capital Budgeting: The Discount Rate Must Be Estimated
6 APV Example
7 Beta and Leverage
Chapter 2: Options and Corporate Finance: Basic Concepts
1 Options
2 Call Options
3 Put Options
4 Selling Options
5 Stock Option Quotations
6 Combinations of Options
7 Valuing Options
8 An Option-Pricing Formula
9 Stocks and Bonds as Options
10 Capital-Structure Policy and Options
11 Mergers and Options
Chapter 3: Options and Corporate Finance: Extensions and Applications
1 Executive Stock Options
2 Valuing a Start Up
3 More on the Binomial Model
4 Shutdown and Reopening Decisions |
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| Prerequisites : | This course requires few prerequisites. However, it is the third part of Corporate Finance. Acquaintance with first and second parts of Corporate Finance is required. |
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| Organization : | Timetable : Total = 10 H |
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| Written notes : | References:
Ross, Westerfield and Jaffee, (2008), "Corporate Finance", 8th edition 2008, McGraw-Hill, Ryerson.
Ross, Westerfield, Jaffee, Hübner, Ducoulombier, Michel, Pirotte et Schier,(2005), "Finance Corporate", Dunod. |
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| Assessment : | written joined-exam with Corporate Finance 1 and 2 (3-hour exam, closed books) |
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| Contacts : | Professor : Alain COEN e-mail : alain.coen@ulg.ac.be Research Assistant: Robert JOLIET, N1 Office 101 Tel.: 04/232.74.22. e-mail: robert.joliet@ulg.ac.be |
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