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Cases in Corporate Finance

Aims

This elective’s main aim is to enable you to use the ideas and techniques of Financial Economics to deal with applied Corporate Finance issues. We will go back and forth between corporate finance theories and confront them to real cases. We will discuss the usefulness as well as the limits of the concepts and tools learned in the core course in Corporate Finance.

 

Learning Objectives

Upon completing this course students should be able to:

o    Understand the financing decisions of corporations.

o Understand the importance of asymmetric information and signaling in capital markets and financing.

o   Develop the optimal capital structure for a corporation.

o   Apply different valuation methodologies when valuing firms with different intrinsic characteristics

o   Understand the role of hybrids such as convertibles and warrants.

o   Provide advice on the dividend policy a firm should follow.

o Analyze the merits of mergers, acquisitions and other restructurings.

 

Who should take this course?

The course is a highly applied course and it is recommended for students who plan to work in the financial sector with special emphasis on consulting companies and banks. The current course structure is the result of a 6 years teaching experience both in MBA and Master in Finance classes at the Judge Business School in Cambridge.

 

Teaching Methods


The course involves 5 sessions. Each session will consist of some lectures and cases, and will involve class discussion. 

 

Course Material

 

The reading material for the course is contained in:

 

-J. Berk and P. DeMarzo,  Corporate Finance, ed. Pearson International Edition

-The New Corporate Finance. Where Theory Meets Practice”, 3rd Edition by D.Chew,   McGraw-Hill Irwin (CHEW).

 

There are several other books on the market covering corporate finance to various degrees of depth. We will not use these books in this course, but if you nevertheless wish to consult other textbooks occasionally, here are some good useful textbooks:

 

-     Financial Markets and Corporate Strategy”, 2nd Edition, by M.Grinblatt and S.Titman

 

-     Corporate Finance – Theory and Practice”, 2nd Edition, by A.Damodaran.

 

For valuation purposes a good reference is:

 

-     Valuation: Measuring and Managing the Value of Companies”, 3rd Edition, by McKinsey & Company Inc., T.Copeland, T.Koller and J.Murrin.

 

 

 

Cases

 

There will be 4 case preparations and one case provided by UNIQA. Only 4 of the 5 cases will be graded. Cases must be handed in on time.  No credit will be given for late cases. 

You are encouraged to meet in groups to discuss and analyze the cases. In the past, students have found that these groups complement the class discussion well. I will accept up to five people per group.

Regarding the cases, each group will submit a three-page memorandum of analysis and recommendations covering the case study questions plus any accompanying tables you wish to include.  Tables should be well organized and labeled.  Be sure to indicate how you arrived at your conclusions.

 

Institut für Finanzwirtschaft
Fakultät für Wirtschaftswissenschaften
Universität Wien

Oskar-Morgenstern-Platz 1
1090 Wien
T: +43-1-4277-38262
F: +43-1-4277-838262
Universität Wien | Universitätsring 1 | 1010 Wien | T +43-1-4277-0