This course adopts the perspective of a CEO or CFO of a publicly held corporation and examines the role of financial analysis in creating corporate value. It draws heavily upon analytical techniques provided in the First Year Financial Management and Policies course and deepens and extends the core theory introduced in that course by examining its application to many of the key policy challenges that confront public corporations. The course consists of four modules. Short-Term Financing and Working Capital Management and Capital Structure Policy are two that look at a series of policy issues that confront CFOs in the course of their day-to-day operations. Topics addressed in these two modules range from forecasting short-term financial needs to assessing the impact of alternative capital structures upon the implementation of corporate strategy. The final two modules, Mergers and Acquisitions and Restructuring and Bankruptcy, examine the role of financial analysis in effecting value-enhancing corporate transitions. Topics addressed range from the identification and quantification of merger synergies to the key strategic and procedural aspects of U.S. bankruptcy filings. Occasionally, the course also harnesses some of the more advanced techniques presented in the First Year Valuation in Financial Markets course. Each case, however, adopts a strictly managerial perspective, utilizing advanced techniques only as they prove necessary to solve specific managerial problems.


Academic course objectives:


·         Provide students with a basic understanding of the core financial challenges facing publicly held corporations

·         Familiarize students with the relevant theoretical and empirical findings from the corporate finance literature

·         Provide students with additional experience and expertise in applying core financial theory to common managerial challenges

·         Broaden students’ finance vocabulary and foster an appreciation for the role of financial analysis in guiding decisions taken throughout corporate organizations


Elements of the course grade:


Class contribution       40%

Final examination        60%