Corporate Finance Aalto Noppa

Corporate Finance (MS-E2120) at Aalto University's Noppa platform offers a comprehensive introduction to the core principles and practices of financial decision-making within corporations. This course, typically offered within the School of Business, aims to equip students with the analytical tools and conceptual understanding necessary to evaluate investment opportunities, manage capital structure, and maximize shareholder value.

The curriculum typically covers several key areas. First, it delves into the fundamentals of valuation, teaching students how to assess the intrinsic worth of assets and companies using methods such as discounted cash flow (DCF) analysis, relative valuation (using multiples), and asset-based valuation. Students learn to project future cash flows, determine appropriate discount rates reflecting risk, and understand the sensitivity of valuation results to key assumptions.

A significant portion of the course focuses on capital budgeting, which involves the process of evaluating and selecting long-term investment projects. Students learn to apply various capital budgeting techniques, including Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. The course emphasizes understanding the strengths and weaknesses of each method and how to account for risk and uncertainty in investment decisions.

Another critical area explored is capital structure, which examines the optimal mix of debt and equity financing for a company. The course covers concepts such as the Modigliani-Miller theorems (with and without taxes), the trade-off theory, and the pecking order theory. Students learn to analyze the impact of different capital structures on a company's cost of capital, financial risk, and overall value. The course also discusses factors such as agency costs, financial distress costs, and market timing considerations that influence capital structure decisions.

Dividend policy is also addressed, exploring the factors that influence a company's decisions regarding the payment of dividends to shareholders. This involves understanding the signaling effects of dividends, the clientele effect, and the tax implications of dividend distributions. The course might also touch upon share repurchases as an alternative way to return capital to shareholders.

Beyond these core topics, the course may also cover related areas such as mergers and acquisitions (M&A), corporate governance, and risk management. The specific content and emphasis may vary depending on the instructor and the evolving landscape of corporate finance practices. Assessment typically involves a combination of problem sets, case studies, quizzes, and a final exam designed to test students' understanding of the key concepts and their ability to apply them in practical situations.

Overall, Corporate Finance at Aalto Noppa aims to provide a solid foundation for students aspiring to careers in investment banking, corporate finance, financial analysis, and other related fields. The course emphasizes critical thinking, analytical skills, and the ability to make sound financial decisions based on a strong understanding of corporate finance principles.