Description
This course develops essential skills in financial decision-making and introduces core concepts, models, and tools of corporate finance. Students learn to analyze financial data and evaluate investment opportunities. Sustainability considerations are integrated throughout to reflect the evolving role of finance.
This course is the first of two core courses of the MBA core program: this course focuses mainly on investment decision making.
The course specifically addresses the following main topics: (i) the basic concepts of the time value of money and their application to mortgages, bonds and equity valuation, (ii) the use of relevant data to develop models to evaluate investment projects, and (iii) understanding the criteria to make decisions for investment projects.
The learning objectives of the course are to equip students with the tools and skills to: (i) analyze and assess investment projects to support sound decision-making, (ii) critically evaluate financial models and their underlying assumptions, and (iii) understand the impact of investment decisions on corporate value creation.
Course Sustainability, Social Responsibility and Ethics Integration
Sustainability and corporate social responsibility issues are integrated throughout the course, particularly in the context of bond and equity valuation, as well as investment decision-making.
Themes covered
Time value of money
Identifying relevant cash flows
Building a discounted cash flow (DCF) model and calculating the net present value (NPV)
The use of alternative investment decision criteria such as the internal rate of return
Financial break-even analysis and sensitivity analysis
Financial risk analysis
Incorporating real options
Important notes
Course in French : FINA 50210
Prerequisite(s): MNGT 50482(A)(Co)