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
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.
- 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
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
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 Corporate Financ...
Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
We are happy to help you find a suitable online alternative.