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CEA CAPA Partner Institution: Universidad Carlos III de Madrid
Location: Madrid, Spain
Primary Subject Area: Finance
Other Subject Area: Business, Management
Instruction in: English
Course Code: 13170
Transcript Source: Partner Institution
Course Details: Level 200, 300
Recommended Semester Credits: 3
Contact Hours: 42
Prerequisites: Financial Economics
DESCRIPTION
This is a basic introductory course in corporate finance. Basically, we present different elements that are necessary to value companies and how to use financial structure to increase the value of a company taking into account the effect they have on the overall firm's risk. In a complementary manner, we will study how the financial structure can be used as an instrumental element to reduce agency conflicts within the firm, and compensation policies to complement various stakeholders (mainly shareholders).
The program is divided into five main parts: FIRST PART: Description of the main financial instruments. Pros and cons of each financial instrument SECOND PART: A firm's financial structure. The Modigliani-Miller framework THIRD PART: Firm's weighted average cost of capital. FOURTH PART: Firm valuation and Project valuation. Differentiation between standard and non-standard projects. FIFTH PART: Shareholders' compensation and its relationship with financial structure.
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