Value Creation and Measument
Objectives
This is an applied course is devoted to corporate value and value creation. It makes use of the of modern corporate finance theory with a strong emphasis on its use in a value creating context. Participants are expected to understand the sources of corporate value, to identify issues in value destruction on their organizations and how to improve value creation in business units.
General characterization
Code
14503
Credits
3
Responsible teacher
Paulo Soares de Pinho
Hours
Weekly - Available soon
Total - Available soon
Teaching language
Portuguese | English
Prerequisites
Available soon
Bibliography
Reference
Textbook:
Koller, Richard, Dobbs, Value: The Four Cornerstones of Corporate Finance,
McKinsey & Co, Wiley 2011.
Teaching method
This
is an applied course and thus relies extensively on class discussion of case
studies, and therefore requires preparation in advance of each class. Case
discussions will be supplemented with lectures, simulations, guest speakers and
class exercises.
Evaluation method
The
assessment of this curricular unit is done together with the block of
curricular units of the same area of knowledge. This assessment has 3 moments,
which together define the final grade of the curricular unit:
• Individual exam with a weighting of 50% of the total mark
• Group work with a weighting of 35% of the total grade value
• Individual reflection-action exercise carried out at the end of the
curricular unit, with a weighting of 15% of the total grade value. The set of
individual action-reflection exercises is a journaling activity, which will
constitute, at the end, a learning portfolio capable of synthesising the
contributions of the Executive Master for that student.
Subject matter
The
course will be structured around the following topics.
• The value of the firm
• New working capital requirements; Capital employed; ROCE
• Value, growth and the cost of capital
• The four cornerstones of corporate finance
• Measuring value creation
• Capital structure and its impact on the value of the firm and its cost of
capital
• Economic Value Added
• Financing decisions and the value of the firm
• Strategic resources and market structure as sources of corporate value
• Corporate valuation, value and prices
•
Creating value through restructuring