Enseignant responsable :

• OLIVIER LEVYNE

Volume horaire : 21

Description du contenu de l'enseignement :

Context

This course is dedicated to students who have not studied the financial structure of the firm and practiced corporate finance. In that context, it presents the central place of valuation in finance and the usefulness of financial theory to deal with it properly. It also proposes an introduction to the Black-Scholes-Merton pricing model and to LBOs Corresponding corporate finance principle are evidenced and illustrated by real examples.

 

Table of contents

1. The place of valuation in finance
2. Peers approaches
   1. Market cap and enterprise value
   2. Listed peers approach
   3. M&A peers approach
3. DCF
   1. Principle
   2. Terminal value
   3. Discount rate
4. Focus on financial structure
   1. Traditional approach
   2. Modigliani & Miller approach without tax
   3. Modigliani & Miller approach with corporate tax
   4. Miller approach with personal tax
5. Usefulness of the Modigliani and Miller approach for valuation
   1. Adjusted cost of capital
   2. Unlevered/re-levered beta: the Hamada formula
   3. Introduction to the trade-off theory
6. Option pricing models and corporate finance
   1. Black & Scholes formula
   2. Usefulness to value equity and debt
   3. Probability of bankruptcy
7. Conclusion
   1. Holdings and conglomerates: risk, return and valuation
   2. Introduction to LBOs

Coefficient : 1

Mode de contrôle des connaissances :

Test after the last course (2 hours)