Advanced Financial Management 2600-GlobMBAAFM
During the course, we shall revise and develop such concepts as corporate valuation, real option valuation, financing decisions, dividends and repurchases, mergers & acquisitions, corporate restructuring, risk management.
Each topic shall be illustrated with case studies. The analyses shall be made from the perspective of the decision maker or the viewpoint of the analyst. The purpose of the decision shall be to create value for the owners.
During the course, we shall analyze risk factors accompanying the decisions taken. For that end, the real option approach shall be used.
While handling each of the topics attention shall be paid to the global context of the financial and investment decisions taken. We shall also discuss the special problems of applying the general concepts of financial management in emerging markets.
Course outline:
• Corporate Value and Value-Based Management (Free Cash Flow Valuation and the Cost of Capital, Overview of Corporate Valuation and Value Based Management, Assessment of a Company’s Financial Health, Quality of Earnings and Assets)
• Financing Decisions (Capital Structure Decisions, Hybrid Financing, Initial Public Offerings, Cost of Capital)
• Distributions to Shareholders: Dividends and Repurchases (Dividends versus Capital Gains, Stock Repurchases, Dividends Policy )
• Mergers & Acquisitions, Corporate Restructuring (Reasons for Mergers, Estimating Merger Effects, Cross-Border M&A, Corporate Restructuring )
• Option Pricing with Application to Real Options (Introduction to Option Pricing Models, Introduction to Real Option, Valuing Real Options, Flexibility and Value)
Type of course
Course coordinators
Learning outcomes
Upon successful completion of the course, the student will be able to:
• Assess financial condition of the firm and identify hidden assets and hidden liabilities,
• Identify relationships among operating, investment and financial decisions,
• Identify relevant cash flows that are the effects of economic actions,
• Analyse and describe ventures in terms of cash flow and risk,
• Analyse and describe ventures in terms of cash flow (and cost of capital) from different stakeholders point of view,
• Identify main sources of financial risk,
• Value Company using DCF methods under condition of certainty and uncertainty,
• Analyse and value the external financial needs to finance particular ventures,
• Analyse and choose the optimal sources of financing in short and long-term,
• Identify and value flexibilities using real option approach.
Assessment criteria
Written exam, team project work, written assignments
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: