Valuation of the Firm

Catalog description

This course deals with the valuation of the levered firm. A significant part of the course will be devoted to learning the technique of discounted cash flow valuation of a firm which is financed with a variety of financial instruments, primarily common stocks and long term debt. Students will learn about the techniques of forecasting future cash flows based on fundamental analysis, macro-economic analysis, and industry characteristics. The course will also examine the valuation of corporate leases, and employee stock option plans. The technique of Economic Value Added (EVA) will be examined.