Description: Valuation is a project-based subject. Students will work in teams to prepare comprehensive and detailed valuations of several major investments. The valuations will require students to acquire a deeper and more detailed understanding of valuation methods and concepts, including: estimation of industry betas and costs of capital, discounting the after-tax WACC vs. the adjusted present value (APV) method, using forward and futures prices, R&D and CAPEX leverage and the two-discount-rate method, and valuing debt-equivalent cash flows and certainty equivalents. The professor will offer lectures and teaching notes on some of these topics and work with the project teams. Guest speakers will brief the class on some of the investments. Preference is given to MBA and M.Fin. students.
Course #: 15.464
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