- 4MMFEM

Goal(s)

The purpose of this course is to introduce the fundamentals of corporate finance and market finance.

In corporate finance, students will learn the fundamental concepts and methods related to (1) corporate investment and financing decisions, as well as (2) corporate valuation. Upon completion of this course, students will be able to assess both the value creation offered by an investment project and the risk associated with that project. They will also have knowledge of the various types of corporate financing and will be able to value a company using different methods.

In Market Finance, this course will focus on the functioning of financial markets and the various types of financial products traded there. Emphasis will be placed on (1) equity and bond markets and (2) derivatives markets such as futures contracts, options contracts, and swaps. Upon completion of this course, students will be able to use financial securities to construct portfolios and utilize various derivatives to hedge positions, implement directional strategies, and engage in arbitrage. They will also be able to value various financial assets.

Examples and real-world cases will be presented throughout the course. Particular attention will be paid to the link between corporate finance and market finance.

Responsible(s)

Sonia JIMENEZ GARCES

Content(s)

This course is divided into four interconnected sections

1- Corporate investment and financing decisions (the logic behind investment decisions; evaluating investment profitability; assessing investment risk; financing investments through equity and debt, as well as the trade-off between equity and debt financing)

2- Business valuation (actuarial and comparative approaches; the link to market capitalization)

3- The organization of financial markets (the example of Euronext); equity and bond markets

4- Derivatives markets (over-the-counter and standardized futures contracts; swap contracts; option contracts…)

The prerequisites for this course include concepts in mathematics, probability, and statistics.

Test

Evaluation : Examen écrit (3h)

Resit : Examen écrit (3h)

Session1 : 100% Written exam of 3 hours (allowed: summary sheet A4 recto-verso handwritten and calculators)
Session2 : 100% Written exam of 3 hours (allowed: summary sheet A4 recto-verso handwritten and calculators)

Calendar

The course exists in the following branches:

• Curriculum - Core curriculum - Semester 7

Additional Information

Course ID : 4MMFEM
Course language(s):

You can find this course among all other courses.

Bibliography

Gestion financière, B. Solnik
Décisions financières et création de valeur, M. Albouy
Principle of corporate finance, Brealey and Myers
Hull J. - Options, futures, et autres actifs dérivés. – Pearson Ed., 8ème édition, 2011
L. Gitman & M. Joehnk – Fundamentals of investing – Pearson Ed, 9ème édition, 2005
Fabozzi F.J., E.H. Neave and G. Zhou - Financial Economics - Wiley, 2012