Advanced Finance

Abstract

The course explores advanced financial decisions encountered by corporate managers and demonstrates how financial theory can be applied to address practical, real-world challenges.

Objective

After taking this course, students will be able to: • Analyze and evaluate corporate financial decisions, including debt financing, risk management, mergers, and acquisitions, using advanced financial theories and practice-oriented tools. • Assess financial risks and implement risk management strategies using options, futures, forwards, and swaps. • Conduct financial planning and working capital management, including financial analysis, inventory management, cash flow optimization, and credit policies. • Integrate sustainability principles into financial decision-making. • Explore and apply emerging trends in finance, such as fintech innovations, digital transformation, and the regulatory responses to financial crises, to real-world business challenges.

Content

Financial management plays a crucial role in shaping a company's future, as today's capital investment decisions can define the industries and opportunities the firm will engage in 10, 20, or more years from now. This course focuses on the key financial decisions corporate managers face, covering major topics such as debt financing, risk management, financial planning and working capital management, mergers and acquisitions, and recent trends. Students will not only develop the tools and mindset of a financial practitioner based on financial theory, but also explore practical applications through real-world examples. Advanced Finance builds on the lecture Introduction to Finance. Students will learn about agency problems and corporate governance, as well as debt financing, covering credit risk and corporate debt valuation. The risk management section focuses on hedging with options, futures, forwards, and swaps, including currency risk hedging. The course also addresses financial planning and working capital management, emphasizing financial analysis, working capital, inventory, and cash management. Additionally, students will examine mergers and corporate restructuring, including leveraged buyouts and private equity. Finally, key topics such as sustainable finance and regulation, and financial crises and regulatory responses, provide insights into the role of finance in fostering stability and sustainability. All lecture topics are complemented with real-world examples and sustainability aspects, given its importance in financial management.

Resources