NEW YORK UNIVERSITY
STERN SCHOOL OF BUSINESS
UB008.001 ADVANCED CORPORATE FINANCE
Monday Wednesday 9:30am-10:45pm
Professor Nikolay Halov
Office: KMC 9-151
• Tuesday 5-7pm
• Other times by Appointment
TA: Ryan Liu
Office hours: Friday 4-5pm
Room: E&Y Lounge, LL in Tisch
By the end of this course, I would like you to be able to
• Apply value public or private firms and projects using discounted cash flow analysis
-Estimate free cash flows to the firm and equity
-Estimate growth rates of operating income and net income
-Estimate cost of capital and cost of equity capital
• Understand and identify the costs and benefits associated with the different way to finance the firms operations.
-Costs of debt: bankruptcy costs, costs of financial distress, debt overhang and the conflicts of interest between its various stakeholders
-Benefits of debt: tax benefits, reduction in asymmetric information problems, reduction in agency problems between owners and managers of the firm. • Design corporate financing strategies with respect to IPOs, recapitalizations, bankruptcy and restructuring
Self contained: will do a brief review of concepts from Corporate Finance Handouts in class
To see what’s next, check NYU Classes the weekend before class Electronic Course pack with HBS cases:
Available for purchase at: http://cb.hbsp.harvard.edu/cbmp/access/34198758
No Required textbooks, however:
Material on valuation covered by Investment Valuation 3rd Ed. by Damodaran Background and basics: Corporate Finance: Brealey, Myers Allen or Ross Westerfield Jaffe, Academic articles will be posted on NYU Classes
• Lecture notes and other relevant material will also be available on NYU Classes
Class participation: 10%
Midterm(individual, Week7): 25% if your midterm score is higher than your final exam score, 20% otherwise Final exam(individual, Wednesday 5/13, 8am-9:50am): 35% if your midterm score is higher than your final exam score, 40% otherwise
Group Work: Students should work in groups of five to seven. Select a group of companies (one for each person in the group). Further details will be provided in week 1.
HBS cases for detailed analysis
Group assignments (5-7 people)
2 page executive summary + All spreadsheets
Midterm and the final exam are strictly individual work.
There will be no make-up midterm. If you miss the midterm due to illness, inform me in advance and the midterm weight will be redistributed to the final.
Select your own groups. The group harmony is the responsibility of the group members, except in extreme circumstances. There will be one grade per group, no matter how the work load is distributed among the group members.
At NYU Stern, we strive to create courses that challenge students intellectually and that meet the Stern standards of academic excellence. To ensure fairness and clarity of grading, the Stern faculty have agreed that for elective courses the individual instructor or department is responsible for determining reasonable grading guidelines.
The Finance Department has elected to use the following grading guidelines for this course and all other elective courses. Instructors should award grades of “A” or “A-” to approximately 35% of students in elective courses with enrollments of more than 25 students. In elective classes of less than 25 students, the instructor is at liberty to give whatever grades they think the students deserve, while maintaining rigorous academic standards. 25% - 35% of students can expect to receive A’s for excellent work 50-70% of students can expect to receive B’s for good or very...
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