Strategic Financial Management

STRATEGIC FINANCIAL MANAGEMENT

COURSE DESCRIPTION:

This strategic financial management course will enhance students understanding of how financial decisions create value for a firm. Students are introduced to the areas of business valuations, mergers and acquisitions, leverage buyouts, and corporate financing and capital structure. The course will enable students to build an understanding of how strategic financial decisions are taken and how the outcomes are quantified. Additionally the course aims at enabling students to assess and manage corporate risks.

The strategy to achieve the above objectives involve multiple activities such as interactive class lectures, case studies, and assignments that require application of class learning to real life examples. Students can make best out of the class by reading the relevant chapters before they sit in the class, actively listening and participating in the class discussion by asking questions and/or adding their perspectives to the different concepts discussed in class. 

COURSE CONTENTS:

• What is finance? What is Strategic Financial Management? Value Creation, an introduction …..

• The Corporate Capital Structure: Theories and Value Creation ……

• The MVA, EVA and CVA

• The Corporate Distribution Policy; Value Created or Destroyed ……..

• The Corporate Capital Budgeting and Value Creation ……..

• Business Valuation (DCF)

• Relative Valuation Models

• Mergers & Acquisitions: Mechanics, the APV Method

• Bankruptcy, Reorganization and Liquidation

• Leverage Buyouts

• Real Options

• Financial Risk Management

TEXTBOOKS:

• “Strategic Corporate Finance Application in Valuation and Capital Structure” by Justin Pettit, John Wiley and Sons Co. (2007)

• “Fundamentals of Corporate Finance” Latest Edition, by Ross, Westerfield and Jordon, McGraw-Hill Co.

• “Corporate Finance Theory and Practice” by Pascal Quiry, Maurizio Dallocchio, Yann Le Fur and Antonio Salvi, John Wiley and Sons Co. (2005)

•  “Investment Valuation: Tools and Techniques for Determining the Value of Any Asset” Second Edition, Aswath Damodaran, John Wiley & Sons Co. (2002).

• “Quantitative Corporate Finance” by Guerard Jr. and Schwartz, Springer (2007)

• “Financial Management and Analysis” 2nd Edition by Frank Fabozzi & Peterson, John Wiley and Sons Co. (2003)