• Calculate the weighted average cost of capital, including the cost of debt with appropriate default risk premiums, cost of equity based on regression and/or bottom up betas and market risk premiums, and appropriate weights for debt and equity;
• Estimate the value of company/project by building proforma financial statements and then applying correct framework to estimate free cash flows;
• Apply the analytical tools of sensitivity and scenario analysis to make informed investment decisions;
• Determine the optimal capital structure and understand how companies raise equity and debt;
• Apply best practices in dividends and stock repurchase decisions;

Building on introductory courses in accounting and finance, corporate finance presents a comprehensive framework for estimating the value of companies and projects; the list of topics covered in the course include, but are not limited to: estimating the appropriate cost of debt and equity; preparation of proforma financial statements for project and company valuation purposes using both fundamental (discounted cash flow) and relative approaches, determining the optimal capital structure, applying best practices in dividend and share repurchase decisions; we will also study how companies raise debt and equity to fund their operations;  case studies are used extensively in this course.

Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings or video clips to be read or viewed before the start of classes with a related task scheduled for class 1 in order to 'jump-start' the learning process.

Course timetable is available on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams

We reserve the right to cancel the course if we do not get enough applications. This will be communicated on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams end March 2020.

Mandatory readings:

Required reading materials to be purchases from HBS Publishing at this link: https:/​/​hbsp.harvard.edu/​import/​672229
 
  Cases:
1. Midland Energy Resources, Inc.: Cost of Capital, #4129, Rev. June 19, 2009
2. Hanson Private Label Inc.: Evaluating an Investment in Expansion, Brief Cases, #4021, Rev. March 1, 2010
3. SUN Brewing (B), #9-207-039, Rev. June 28, 2010
4. Goodyear Tire & Rubber Company: Follow on Equity Issues, #UV2555, Rev. Dec 17, 2010
5. U.S. Bank of Washington, #9-292-057, Rev. November 22, 1993
6. Dividend Policy and Linear Technology, #9-204-066, Rev. February 11, 2004
7. Kerr-McGee, #9-207-020, Rev. July 25, 2012
 
HBS Notes and reading:
1. Assessing a Company's Future Financial Health, #9-911-412, Rev. May 28, 2012
2. Business Valuation: Standard Approaches and Applications, UV6586; rev. Nov. 21, 2013
3. Corporate Valuation and Market Multiples, #9-206-039, Rev. January 16, 2009
4. Note on Alternative Methods for Estimating Terminal Value, #9-298-166, June 8, 1998
5. The Cost of Capital: Principles and Practice, #UV6793, Rev. Nov. 13, 2015
6. Overview of Credit Ratings, #UV0400
7. The Issue Process for Public Securities, #UV0104
8. Note on Bank Loans, #9-291-026, Rev. October 29, 1993

Additional relevant readings:

For background reading:
Ivo Welch, Corporate Finance: 4th Edition, 2017 (Free online access)