UCL - Finance approfondie

[LSMF2000]

[30h] 5 credits

This course is taught in the 2d semester.

This course is not taught in 2010-2011

Teacher(s):

Language: French

Level: Second

Aims
Main themes
Content and teaching methods
Other information (prerequisite, evaluation (assessment methods), course materials recommended readings, ...)

Aims

To give to our students a good understanding of the financial decisions of the firm. A special attention is given to the capital budgeting decisions and the capital structure choices. The second objective is to understand and to implement optimal portfolio strategies.

Main themes

Financing and capital structure.
IPO, Capital increase, shares buyback.
Selection and implementation of optimal portfolios
Returns expected by shareholders and bondholders

Content and teaching methods

Valuation and expected return (CAPM, APT) are analysed in the first part of the course. Then the optimal financial structure is covered, starting from Modigliani Miller to Black Scholes and options theory. The last part of the course overviews the price reactions to firm announcements such as capital increase, mergers and acquisitions.

Content
An overwiew of financing choices
The financing mix : tradeoffs and theory and Black Scholes theory
Dividend policy : schools and theory
Beyond cash dividends: buybacks, spinoffs, and divestitures
Optimal allocation and portfolio of risky assets
Mergers and acquisitions
Initial Public Offering
Studies of price rection to firm announcements.

Methods
In-class activities
1 Lectures
1 Exercices/PT

At home activities
1 Readings to prepare the lecture

Other information (prerequisite, evaluation (assessment methods), course materials recommended readings, ...)

Prerequisites :good level and financial accounting and in financial mathematics

Evaluation : Class participation and oral examination, in French

Support : Documents provided through icampus

References : Provided in the course's presentation