Leonard N. Stern School of Business

Available dates

Jun 8—11, 2020
4 days
New York, New York, United States
USD 6290
USD 1572 per day

Disclaimer

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About the course

In order to make the best finance and investing decisions, executives must have a strong understanding of fundamental techniques in corporate finance. They can then employ strategies that ultimately maximize firm and shareholder value. The two courses included in the Mastering Corporate Finance bundle will enhance your skills and empower you to make informed decisions that increase value for your organization.

Program Takeaways

  • Value – Learn how to make value-maximizing investment decisions
  • Decision Rules – Appreciate the uses and misuses of popular decision rules (NPV, IRR)
  • Forecasting – Analyze and make cash flow forecasts from projected income statements
  • Leverage – Learn the benefits, costs and risks associated with leverage and appreciate popular fallacies, such as “debt is cheap and equity is expensive”
  • Capital Structure – Analyze how firms determine their optimal capital structure and use debt tax shields increase the value of their business
  • Methods – Utilize rigorous methods to account for leverage in equity or firm valuation, as well as investment decisions

Agenda

Day 1 – Understanding the Basics of Corporate Finance

Session 1: Discounted Cash-Flow Analysis and Rules to Make Investment Decisions

  • Present Values, Perpetuities, Annuities
  • Net Present Value Rule, Internal Rate of Return (IRR) Rule
  • Shortcomings of the IRR Rule
  • Payback Rule
  • Capital Budgeting

Session 2: Real Options

  • Option to Wait and the Value of New Information
  • Option to Expand
  • Option to Scale Investments Up or Down

Understanding the Basics of Corporate Finance Day 1 Conclusion and Evaluations

Day 2 – Understanding the Basics of Corporate Finance

Session 3: Cash Flows

  • Five Steps of Project Valuation
  • What are Cash Flows?
  • Making Cash-Flow Forecasts: Investments, Recoveries, Depreciation, Sunk Costs, Opportunity Costs, Operating Cash Flows, Capital Gains and Losses, Working Capital

Session 4: Cost of Capital

  • Capital Asset Pricing Model
  • “Pure Play Approach” to Assess Project Risk
  • Market Price of Risk
  • Weighted Average Cost of Capital

Understanding the Basics of Corporate Finance Program Conclusion and Evaluations

Day 3 – Advanced Corporate Finance

Session 1: Capital Structure I

  • Review: Capital Asset Pricing Model
  • Modigliani-Miller I: Leverage and Firm Value
  • Modigliani-Miller II: Leverage and Equity Risk
  • Cost of Capital Fallacy

Session 2: Capital Structure II

  • Leverage, Information, and Incentives
  • Interest Tax Shields
  • The “Low Leverage Puzzle”
  • Costs of Financial Distress
  • Optimal Capital Structure

Advanced Corporate Finance Day 1 Conclusion and Evaluations

Day 4 – Advanced Corporate Finance

Session 3: Case Study: UST, Inc.

  • Costs and Benefits of Leverage
  • UST’s Leveraged Recapitalization
  • Computing UST’s Optimal Capital Structure

Session 4: Leverage, Valuation and Investment Decisions

  • Weighted Average Cost of Capital (WACC) Method
  • Adjusted Present Value (APV) Method
  • Examples: ABC Inc., Candy Company, Singer Corp.

Advanced Corporate Finance Program Conclusion and Evaluations

Who should attend

Although there are no formal education or background requirements, this course is designed for executives who meet the criteria below. While we strongly encourage global participation, please note that all courses are taught in English. Proficiency in written and spoken English is required.

  • Years of Experience – Designed for professionals with 5+ years of work experience
  • Job Functions – Ideal for professionals who need to make investment or financing decisions, or who frequently communicate with financial decision makers
  • Prerequisites – Intended for individuals who want to improve their financial literacy

Trust the experts

Holger Mueller

Biography Holger M. Mueller is the Nomura Professor of Finance at New York University Leonard N. Stern School of Business. He is also a research associate at NBER, a research fellow at CEPR, and a research associate at ECGi. Professor Mueller has been with NYU Stern since 2001. He teaches Corpo...

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