Finance II (Valuation and M&A)

Course Objectives

This course aims to help students learn to use financial knowledge and perspectives and to acquire an entrepreneurial perspective when making management decisions. In other words, it focuses on a study of how CEOs should make managerial choices and decisions with the help of CFOs. The course therefore covers optimal capital structure, merger and acquisition strategies, and initial public offerings, among other topics.
This course assumes that students already have basic knowledge on forecast financial statements learned in Finance, the impacts of business strategies on financing, and fundamental business valuation. The course will be conducted primarily through case studies, and related or applicable topics not covered in the cases will be covered in the lectures to provide students with a systematic understanding of corporate finance.

This course is designed for those aiming to acquire the basics for decision-making to address financial issues as business leaders.

 

Course Details

Programs: Full-time MBA, Part-time & Online MBA
Discipline: Accounting and Finance
Course Level: Applied Course
Required/Elective Course: Elective Course
Number of Credits: 1.5
Report: Day 4
Hours Per Class: 3 hours
Class Capacity: 35

 

Recommended Preliminary Courses

- Critical Thinking
- Finance I

 

Theme/Reading Materials

Day 1
Session A
THEME

Analysis Process Design

Investment Decision and Fund Procurement

CASEBusiness Risk and β Value: Cost of Capital
Flash Memory, Inc.
Session B
THEMEInvestment Decision and Fund Procurement (Continued)
CASEFlash Memory, Inc.
Day 2
Session A
THEMEDebt and Optimal Capital Structure Business Characteristics and Financial Policy (Optimal Capital Structure)
CASEDebt and Optimal Capital Structure
A New Financial Policy at Swedish Match
Session B
THEMEBusiness Characteristics and Financial Policy (Optimal Capital Structure) (Continued)
CASEA New Financial Policy at Swedish Match
 
Day 3
Session A
THEMEValuation Approaches
Business and Financial Strategy in M&A
CASE

Enterprise Valuation Methods

HEALTH CARE MANUFACTURING INC.

Session B
THEMEBusiness and Financial Strategy in M&A (Continued)
CASEHEALTH CARE MANUFACTURING INC.
Day 4
Session A
THEMEComprehensive Case Analysis 
CASEBuffett's Bid for Media General's Newspapers
Session B
THEMEComprehensive Case Analysis (Continued)
CASEBuffett's Bid for Media General's Newspapers
 
Day 5
Session A
THEMERisk and Uncertainty
Valuation under Uncertainties (IPO of Emerging Company)
CASERisk and Uncertainty – Valuation Approach under Uncertainties - Snap Inc.’s IPO (A)
Session B
THEMEValuation under Uncertainties (IPO of Emerging Company) (Continued)
CASESnap Inc.’s IPO (A)
Day 6
Session A
THEMELBO (Leveraged Buy-out) and APV and WACC Methods of Valuation Comprehensive Exercise (M&A Utilizing Debt (LBO)) 
CASE

LBO (Leveraged Buy-out) and APV and WACC Methods of Valuation

Valuation of AirThread Connections

Session B
THEMEComprehensive Exercise (M&A Utilizing Debts (LBO)) (Continued)
CASEValuation of AirThread Connections

 

Textbook (Please purchase the following textbook before the course starts.)

Richard Brealey and Stewart Myers and Franklin Allen, 2020. Principles of Corporate Finance. 13th ed. Global ed. McGraw-Hill Education.

Reference

McKinsey & Company Inc, Tim Koller, Marc Goedhart, David Wessels, 2020. Valuation: measuring and managing the values of companies. 7th ed. Wiley.
(https://www.wiley.com/en-us/Valuation%3A+Measuring+and+Managing+the+Value+of+Companies%2C+7th+Edition-p-9781119610922)

Faculty

Masaru Hoshino
Masaru Hoshino
Accounting and Finance, Management Philosophy, Specialization
COURSES:
Finance II (Valuation and M&A)
Finance III (Mergers and Acquisitions)
Research Project
Yoshitaka Saeki
Yoshitaka Saeki
Accounting and Finance
COURSES:
Finance I (Corporate Finance)
Finance II (Valuation and M&A)
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