Advanced Corporate financeWho am I?Why Study Corporate Finance?Corporate Finance tools are useful for making good decisions in other areasMain goal of the courseOverview of the courseWho You Are...ADVANCED CORPORATE FINANCEWho am I? • Prof. Mathias Kronlund • Education: — Ph.D. (Finance), MBA; University of Chicago — M.Sc. Industrial Engineering; Aalto University (Helsinki, Finland) • Research focus: Corporate Finance — E.g. Executive compensation, Rating agencies, Payout policiesWhy Study Corporate Finance? • It’s a valuable skill in the workplace! — Not just in the banking/investment industry • In your career, you may face questions such as: — Should your firm develop a new product or enter a new market? — Should your firm issue shares or borrow money to finance an investment? — How much cash should your firm keep versus pay back to investors? — Should your firm merge with another firm? — How raise money for a new start-up? • And what’s the business worth? (have you seen “Shark Tank”?)Corporate Finance tools are useful for making good decisions in other areas • E.g. making better decisions about personal finances: — How much should I save for retirement? — Is a car loan or lease more advantageous? — What type of mortgage should I get? — Is a particular stock a good investment? • These questions look different from corporate finance • But, the way you learn to think about corporate finance can be highly applicable to personal financeMain goal of the course • Teach you all the fundamentals of corporate finance! • Acquire the tools necessary to evaluate: — the value of investment projects — the value of a company • Learn to analyze financing decisions — Financing firms and new projects — Choosing a payout policy — Mergers & Acquisitions • Not just know, but understand and apply this body of knowledge — Apply to case studies and recent events! • Use in new and more complex situations (“think” corporate finance) — The world is always changing! — General principles > Specific formulaeOverview of the course 1. Cash flows, Discounting, and Valuation — Evaluating/Valuing decisions (e.g. new projects) — Cash flows + Cost of Capital  Valuation 2. Financial Policy — How should projects be financed? Debt vs. Equity — How to raise financing — How to pay investors back 3. Special Topics (as time allows) — M&A — Corporate governance — Risk managementWho You Are... 1. Fill out a “personal info sheet” 2. Please bring name