BUKD-F 745 Valuation and Capital Investments
- 12 weeks
- 3.00 credits
- Prerequisite(s): Core 2
This course is an in-depth review of valuation and capital investments. Some of the primary objectives are to develop an understanding of why value creation is a critical factor in the continued existence of an organization, how value is measured, the strategic and operating activities that contribute to the creation of value, and how management incentives can be aligned with value creation to reduce potential governance issues. Specifically, the course will cover:
• The link between value and strategy
• The impact of capital structure and dividend policy on firm value
• How to measure the value of an organization as it currently exists
• Financial analytical tools to correctly assess value enhancing investments
• An approach to value management options in potential investments
• Different approaches to incorporate risk in management investment decisions
• How financial structure and dividend policy can impact value
• The impact of synergies on merger and acquisition valuations
The class will make extensive use of case discussions and developing Excel valuation models to develop an understanding of these topics.