Corporate Finance (FIN117)

This course unit focuses on the fundamental concepts of corporate finance. It covers both theoretical and empirical aspects of capital investment decisions, determination of cost of capital, valuation, and short-term as well as long-term financing decisions. This course examines the financial goals of a corporation with an emphasis on value creation. This course aims to provide an understanding of main principles and practical skills necessary to analyse financial decisions made by companies, and to evaluate their impact on a company and its financial results.

• Analyse and evaluate company‘s activities and financial condition from financial statements (balance sheet, income statement, cash flow statement).
• Evaluate investment projects using different methods: NPV (net present value) and its alternatives (IRR, payback method, profitability index).
• Evaluate and compare different methods of long- and short-term financing.
• Calculate weighted average cost of capital (WACC) of a corporation, to take taxes into account.
• Apply and compare main corporate valuation methods (discounted cash flows, relative valuation).
• Relate the main tasks in financial management; discuss the risk of financial decisions.
• Work in teams, present work results in writing, substantiate decisions taken.