• Skip to Content
  • Skip to Main Navigation
  • Skip to Search

Kelley School of Business Indiana University
  • Programs
    • Undergraduate
    • Full-Time MBA
    • Kelley Direct Online MBA
    • Online Master’s Degrees
    • +Kelley
    • 3/2 MBA
    • MS in Accounting with Data and Analytics
    • MS in Finance
    • MS in Healthcare Management
    • MS in Information Systems
    • PhD
    • Executive Degree Programs
    • Executive Education
    • Indianapolis Programs
    • International Programs
  • Faculty & Research
    • Research & Publications
    • Faculty Directory
    • Departments & Majors
    • Centers & Institutes
    • Courses
  • Recruiters & Corporate Relations
    • Graduate Career Services
    • Undergraduate Career Services
    • Indianapolis Career Services
    • Alumni Career Resources
    • Corporate & Foundation Relations
    • Indianapolis Corporate & Foundation Relations
  • Diversity
    • Undergraduate Initiatives
    • Graduate Initiatives
    • Indianapolis Initiatives
    • Alumni Legacies
  • Alumni
    • Who We Are
    • Get Involved
    • Career & Professional Development
    • Awards
    • Events
    • Contact Us
  • About Us
    • Dean's Welcome
    • Administration
    • Kelley Women
    • School Profile
    • History
    • Visit Bloomington
    • Visit Indianapolis
    • Contact
    • Directory
    • Social Media Directory
    • Rankings
  • More
    • Centers & Institutes
    • Directory
    • News & Events
    • Give
    • Kelley Store
  1. Home
  2. Faculty & Research
  3. Courses

BUS-F540 The Firm in the Capital Markets

  • 7 weeks
  • 1.5 credits
  • Prerequisite(s): MBA Core

This course provides a rigorous introduction to corporate valuation in global competitive markets. The organizing principle of value-based management is used to provide answers to such questions as: What is the most appropriate notion of value and how is it measured? How do we use finance to fashion and evaluate corporate strategies and determine whether they create or destroy value? How are different valuation models related to each other? Students will also develop a proficiency in the technology necessary to implement this knowledge in a real-world setting. The objective is to provide students with cutting-edge valuation tools that are firmly rooted in sound concepts. The course is structured into four modules to implement the design principles discussed above:

  • Module 1: Valuation and Corporate Strategy (Value creation principles, key value drivers, entry barriers, competitive advantage and valuation implications.)
  • Module 2: Valuation in Practice (Value metrics: TSR, EVA, CFROI, embedded expectations of value creation, project appraisal, base case and incremental cash flows, cannibalization, project risk, using and interpreting simulation results, deciphering financial statements, proforma models and FCF projections, discussion and overview of valuation methods.)
  • Module 3: Valuation Framework (Capital structure and value, modeling optimal capital structure, estimating marginal tax rates, equivalence of APV, WACC, flows to equity, divisional cost of capital, ownership and leverage.

Course Materials: Copeland, Koller, and Murrin, Valuation: Measuring and Managing the Value of Companies, 3rd edition, (Wiley 2000).Based on projects, cases, and a written exam.

Social media

  • Facebook for the Kelley School of Business Full-Time MBA Program
  • Twitter for the Kelley School of Business Full-Time MBA Program
  • Linkedin for the Kelley School of Business Full-Time MBA Program
  • Blog for the Kelley School of Business Full-Time MBA Program
  • Instagram for the Kelley School of Business Full-Time MBA Program
  • Youtube for the Kelley School of Business Full-Time MBA Program
  • Accessibility
  • Privacy Notice
  • Copyright © 2023 The Trustees of Indiana University