Corporate Finance I

About this course

Students learn how to use capital budgeting and weighted Average Cost of Capital techniques in decision making. The student learns the time value of money, valuing bonds and stocks and the cost of capital derived from those models. Use of capital budgeting methods, using discounting cash flow analysis, focusing on the methods of NPV and IRR, calculation of projected Free Cash Flows to Firm (FCFF), under conditions of certainty and uncertainty. The student is introduced to the concept of risk and the calculation of risk factor in capital budgeting through the coefficient of variation, CAPM and scenario analysis. Calculation of the weighted average cost of capital, its interpretation and its use in company valuation. Capital budgeting under inflation and under conditions of risk. Cost of capital, cost of debt.

Expected learning outcomes