- Teacher: Jean-François Daniel Gajewski
The course has the core objective to analyze the two important corporate financial decisions from a theoretical and practical point of view, the investment and financing decisions.
After a quick remind of basic financial operations, the course presents the main goals of corporations and the logic behind financial decision-making. Then, it deals with corporate financial management and more precisely it provides knowledge and skills to appreciate the return of investments projects. More specifically, after defining the notion of creation value, the course presents the tools for capital budgeting in situations of certainty and uncertainty. Consecutive to investment analysis, the following part presents the main sources of financing (i.e., debt, private equity public equity and hybrid securities) and the criteria of choice between the different means. The funding decision is first based on a comparison of sources of financing and analyzed through the theory of capital structure.
Then, the two decisions of investment and financing are analyzed together through a financing plan and long-term financial planning more generally. Last, the course presents some notions of risk management, and some tools for valuing projects and companies.