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MBA 520: Financial Analysis and Valuation

Corporate Finance is a core area of finance that examines financial decisions made within firms of any type, start-up or large-cap, private or public, domestic or multinational. Each firm is faced with three key financial decisions: the capital budgeting (investment) decision, the capital structure (financing) decision, and the payout (dividend) decision. The first decision deals with identifying the set of investment projects that a firm will pursue. The second decision deals with the problem of selecting an optimal financing mix to finance the projects that a firm will pursue. The third decision is about how much of the firm’s free cash flow will be returned to its shareholders, as well as the form of this payout. This course primarily covers the following: a) an in-depth-coverage of a set of fundamental techniques, tools, and methodologies for financial analysis; b) a detailed exploration of the investment decision; c) financial statement analysis; and d) valuation analysis (the final third of the course). Opportunities for practice through case discussions and financial modeling exercises are included. Other course topics include risk and return, estimation of a firm’s cost of capital, project analysis (investment decision), financial statement analysis, Discounted Cash Flow, Relative Valuation, Capital Cash Flow, Start-up and Private Company Valuation.