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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, Aline Muller, Séverine Plunus |
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| Coordinator : | Aline Muller |
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| Language : | English language |
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| Course contents : | 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 : | Organization and Content
This course is composed of 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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| Written notes : | Main reference
Corporate Finance - European Edition: Hillier D., Ross S., Westerfield R., Jaffe J. and Jordan B.
Other 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 exam (3-hour exam, closed books) |
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| Contacts : | Aline Muller - Aline.Muller@ulg.ac.be
Séverine Plunus - splunus@ulg.ac.be
Laurent Bodson - laurent.bodson@ulg.ac.be |
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