EBF 401Strategic Corporate Finance for the Earth, Energy, and Materials Industries
The objective of this course is to give students a working knowledge of the major tools used by financial managers for making investment and financing decisions. Topics include, but are not limited to: time value of money, trade-off between risk and expected return, Capital Asset Pricing Model, valuation and role of debt and equity, capital budgeting/project evaluation techniques, cost of capital, cash flow estimation, real and financial options, company valuation, and capital structure decisions. As an illustration of the theory, we will discuss examples and cases, with a focus on the energy industry. Students will learn the fundamentals of capital budgeting and structure analysis; how capital structure decisions affect the value of the firm; and how to develop financial statements for energy projects.