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 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 (Part-time MBA)
Recommended Preliminary Courses
- Critical Thinking
- Finance I
Theme/Reading Materials
Day 1
Session A
| THEME | Analysis Process Design Investment Decision and Fund Procurement |
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| CASE | Business Risk and β Value: Cost of Capital
Flash Memory, Inc. |
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Session B
| THEME | Investment Decision and Fund Procurement (Continued) |
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| CASE | Flash Memory, Inc. |
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Day 2
Session A
| THEME | Debt and Optimal Capital Structure Business Characteristics and Financial Policy (Optimal Capital Structure) |
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| CASE | Debt and Optimal Capital Structure
A New Financial Policy at Swedish Match |
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Session B
| THEME | Business Characteristics and Financial Policy (Optimal Capital Structure) (Continued) |
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| CASE | A New Financial Policy at Swedish Match |
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Day 3
Session A
| THEME | Valuation Approaches
Business and Financial Strategy in M&A |
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| CASE | Enterprise Valuation Methods HEALTH CARE MANUFACTURING INC. |
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Session B
| THEME | Business and Financial Strategy in M&A (Continued) |
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| CASE | ・Health Care Manufacturing |
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Day 4
Session A
| THEME | Comprehensive Case Analysis |
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| CASE | Buffett's Bid for Media General's Newspapers |
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Session B
| THEME | Comprehensive Case Analysis (Continued) |
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| CASE | Buffett's Bid for Media General's Newspapers |
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Day 5
Session A
| THEME | Risk and Uncertainty |
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| CASE | Risk and Uncertainty – Valuation Approach under Uncertainties - Snap Inc.’s IPO (A) |
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Session B
| THEME | Valuation under Uncertainties (IPO of Emerging Company) (Continued) |
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| CASE | Snap Inc.’s IPO (A) |
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Day 6
Session A
| THEME | LBO (Leveraged Buy-out) and APV and WACC Methods of Valuation Comprehensive Exercise (M&A Utilizing Debt (LBO)) |
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| CASE | LBO (Leveraged Buy-out) and APV and WACC Methods of Valuation Valuation of AirThread Connections |
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Session B
| THEME | Comprehensive Exercise (M&A Utilizing Debts (LBO)) (Continued) |
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| CASE | ・Valuation of AirThread Connections |
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Textbook (Please purchase the following textbook before the course starts.)
Principles of Corporate Finance
11th ed. McGraw-Hill Education
Brealey, Richard A., Myers, Stewart C., Allen, Franklin, 2014
Reference
"McKinsey & Company Inc, Tim Koller, Marc Goedhart, David Wessels, 2015. Valuation: measuring and managing the values of companies. 6th ed. Wiley. (https://www.wiley.com/en-us/Valuation%3A+Measuring+and+Managing+the+Value+of+Comp+anies%2C+6th+Edition-p-9781118873700)"
11th ed. McGraw-Hill Education
Brealey, Richard A., Myers, Stewart C., Allen, Franklin, 2014
ISBN-10: 0077151569
ISBN-13: 978-0077151560
