Finance Valuation Slide

CASS BUSINESS SCHOOL MSc PROGRAMME 2010/11 Corporate Finance & Valuation

Mario Levis

Corporate Finance & Valuation

Mario Levis

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Aims and objectives of the course

 Appreciate the types, context and framework of corporate finance decisions  Understand the methods used to measure their long-term profitability.  Understand the complexities of corporate investment decisions and practice the tools for assessing their sensitivity to risk and uncertainty.  Understand the concepts and mechanics in calculating the cost of equity and cost of capital  Develop analytical tools for assessing the costs of the key sources long term finance for private and listed companies.  Understand the process and costs of raising equity capital.  Develop analytical skills to assess the value of private and listed companies.

Corporate Finance & Valuation

Mario Levis

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Structure of the course

The course is divided into four main parts: I. Risk and Return   II. II   III.   IV.   The Risk Premium Cost of Equity, Cost of Debt and Cost of Capital NPV and IRR rules Risk Assessing Tools Initial Public Offerings, Seasoned Equity Offerings Private Equity Cash Flow Valuation Relative Valuation

Corporate Finance & Valuation Mario Levis 3

Capital B d ti Decisions C it l Budgeting D i i

Raising Equity Capital

Company Valuation

Weekly sessions

Week

1 2 3 4 5 6 7 8 9 10

Topic

Introduction Risk and Return The Cost of Capital p g g Capital Budgeting Risk and Uncertainty IPOs SEOs & Private Equity Cash Flow Valuation Relative Valuation Revision

Pages

Case

DAM, Problems

Ch3: 4,11,15,16 Ch3 4 11 15 16

C1: Nike, Inc .

Ch4: 1,17-19,21-23 Ch5: 15, 19 , Burren Energy

C2: Netflix C3: Warbug Pincus C4: Ocean Carriers C5: Tottenham Hotspur

Corporate Finance & Valuation

Mario Levis

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Readings

 Main Reading  Damodaran, A., 2011, Applied Corporate Finance, 3nd Edition, John Wiley and Sons, ISBN: 978-0-470-38464-0 (Damodaran...