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    Advanced Corporate Finance 15-434 Syllabus

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    Advanced Corporate Finance 15-434 Syllabus

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    21 views5 pages

    Advanced Corporate Finance 15-434 Syllabus

    Uploaded by

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    © All Rights Reserved
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    of 5

    SLOAN SCHOOL OF MANAGEMENT

    MASSACHUSETTS INSTITUTE OF TECHNOLOGY

    Professor Egor Matveyev Fall 2024


    (rev. 23 Apr 2024)

    15.434 Advanced Corporate Finance

    This is an advanced course that approaches corporate finance from the standpoint of a CFO whose job
    is to maximize the value of the firm. The focus of this course is on advanced valuation topics, financial
    modelling, the choice of financing vehicles, and capital structure design. In addition, this course covers
    financial restructuring; project and infrastructure finance; M&A modeling, including treasury stock
    method, accretion/dilution analysis, and optimal deal structure; valuation of convertible securities; and
    valuation of investment options. This is an applied course that will use case studies and lectures to
    introduce concepts and tools.

    This course is of interest to students who are pursuing a career in various roles in investment banking
    that involve (directly or indirectly) building financial models, valuation, transaction structuring, and
    evaluation of financing options. This course is also recommended to students who are pursuing a career
    in corporate finance and treasury roles (for example, CFO) as well as roles that involve valuation and
    financing decisions in private equity.

    The goal of this course is to build knowledge and to develop core skills necessary to value and structure
    financial transactions. These fundamental skills will be of use in new circumstances and situations.

    A. Administrative Structure

    Class Schedule

    The class meets twice per week. Section A meets MW 8:30-10:00 and Section B meets MW 10:00-
    11:30, both in E51-145.

    Optional recitation sessions will be held on Fridays 11:00-12:30 in E51-395. Details to be announced.

    Prerequisites

    For MBA students, 15.401 is a required prerequisite; 15.402 is preferred but not required in order to take
    this class. MFin students can take this class concurrently with 15.425. All MFin students are expected
    to have obtained a passing grade in 15.415. Sloan Fellows are expected to be familiar and have working
    knowledge of the following concepts: FCF, M&M, CAPM, WACC, financial options, option pricing,
    and implied volatility.
    Course Website

    The course website is on Canvas (https://canvas.mit.edu) and all teaching materials will be posted there.

    Contact Information and Office Hours

    • Professor Egor Matveyev


    - Email: [email protected]
    - Office: E62-621
    - Office hours: Wednesdays, 1:00-2:00

    • Teaching Assistants:
    - Guiditta Perinelli, Finance PhD student, [email protected].
    - Alexander Genoe, MFin student (2025), [email protected].
    - TA office hours: TBA

    • Course Assistant:
    - Jasae Hinds ([email protected], E62-631)

    B. Course Materials

    • Required cases:

    - Refer to Canvas, under Study.Net Materials.


    - Questions for case assignments will be available on the course website.
    • Optional material (not required):

    - J. Berk and P. DeMarzo, Corporate Finance, 4th edition (or any other edition you may
    have). Pearson Series in Finance.
    - This book may be useful for some valuation topics and discussion of investment options.

    C. Course Requirements and Grading

    This course is graded on a letter grade basis. Auditing this course is not permitted.

    Course requirements include attendance and participation in class, case study write-ups, and two exams.
    The following weighting scheme will be used to determine each student’s course grade:

    15.0% Class Participation


    15.0% Case Study Write-Ups
    30.0% Midterm Exam
    40.0% Final Exam

    Class Attendance

    Students are required to fully attend all classes. Attendance and participation enhance the quality of
    learning for all students in class. Students whose attendance is impacted by recurring illness/personal
    emergency should notify their faculty/TAs of absences immediately and meet with their program advisor
    to discuss. Attendance will be taken by the TA each class.

    Late Attendance

    If a student shows up to class after the class has started (i.e., professor started the lecture), the attendance
    is not counted. In addition, the professor reserves the right to deny entry to students showing up after the
    class has started.

    Class Participation

    You are expected to participate in class discussions. Most classes have assigned case studies that students
    are expected to work on prior to each class. Name cards are required in each class. You should expect
    to be cold-called, especially if you are not voluntarily participating in class discussions.

    Exams

    Midterm and final exams are mandatory. The midterm exam will take place on October 16 (the last class
    before SIP week). The final exam will be scheduled by the registrar and will take place during the final
    exam period (December 16-20). Make sure to not arrange any travel prior to when the final exam date
    is announced. Final exams cannot be made up, no exceptions.

    The exams will test your understanding of the key class concepts. They do not test your ability to
    memorize; instead, they probe your understanding of the material. To prepare for exams, you should
    review the slides together with your own class notes, case studies and the models you have built.

    Both exams are closed-book. You will be allowed one double-sided page of notes for the midterm exam
    and two double-sided pages of notes for the final exam. The sheets must be no larger than 8.5-by-11
    inches and must be hand-written.

    Class Assignments

    There are two types of assignments. The first type requires you to read, work through the case, and be
    ready to answer questions; however, you are not required to submit your solutions. The second type
    requires you to submit a two-page memorandum of analysis and recommendations based on the assigned
    case questions. For technical cases, write your memorandum starting with the major points you learned
    from working on the case. For cases that require a decision or a strategy, write your memorandum as if
    you are making a recommendation to the decision maker. The two-page limit for the case memoranda is
    for text only. You may attach as many numerical calculations as you wish. Memoranda will not be
    accepted after the class has met. The memorandum will be given credit if it is handed in and no credit if
    it is not. The memorandum will be given either a plus, satisfactory, or minus grade.

    You are encouraged to work on cases in groups (up to 4 students each).

    Grading of cases will be on the basis of effort, not correctness. However, if you are making obvious
    mistakes based on the material already learned in class, expect points to be deducted. Overall, the
    purpose of case assignments is to ensure preparation before class.
    E. Sloan Values and Accommodations for Students with Disabilities

    You are responsible for upholding Sloan’s code of conduct, which mandates zero tolerance for cheating
    and plagiarism. For more details on Sloan’s academic policies, please read the document “Classroom
    Values in Practice” which is available on the course website.

    Sloan values an inclusive environment. If you need a disability accommodation to access this course,
    please communicate with us early in the semester. If you have your accommodation letter, please meet
    with the faculty so that we can understand your needs and implement your approved accommodations.
    If you have not yet been approved for accommodations, please contact Student Disability Services to
    learn about their procedures. We encourage you to do so early in the term to allow sufficient time for
    implementation of services/accommodations that you may need.

    F. Preliminary Course Outline [TBC]

    This is a brief course outline. Detailed course outline is posted on Canvas.


    Lecture Date Topic Case Assignment
    Due
    1 9/4 Introduction & Modeling Basics
    2 9/9 Advanced Valuation 1 PSEG (A)
    3 9/11 Advanced Valuation 2 PSEG (B) Yes
    4 9/16 Advanced Valuation 3
    5 9/18 Advanced Valuation 4 Ducati/TPG Yes
    6 9/23 Financial Modeling 1 (Cap Structure)
    7 9/25 Financial Modeling 2 (Cap Structure) WOW/Knology Yes
    8 9/30 Bankruptcy and Restructuring 1 UAL
    9 10/2 Bankruptcy and Restructuring 2
    10 10/7 Bankruptcy and Restructuring 3 Flagstar
    11 10/9 Financial Modeling 3 (Cap Structure) JetBlue Airways Yes
    10/14 NO CLASS (Indigenous Peoples' Day)
    12 10/16 Midterm Exam
    10/23 NO CLASS (SIP Week)
    10/25 NO CLASS (SIP Week)
    13 10/28 Credit Risk; Convertible Securities
    14 10/30 Financing in Distress; Convertible Securities Corning
    15 11/4 Investment Options 1 Apex Yes
    16 11/6 Investment Options 2
    11/11 NO CLASS (Veterans Day)
    17 11/13 Syndication Chase/Disney Yes
    18 11/18 Project Finance 1 Petrozuata
    19 11/20 Project Finance 2
    20 11/25 Financial Modeling 4
    11/27 NO CLASS (Thanksgiving)
    21 12/2 Project Finance 3 Calpine Yes
    22 12/4 Financial Modeling 5 (M&A) Saucony/Stride Rite Yes
    23 12/9 M&A Tesla/SolarCity
    24 12/11 Review & Synthesis
    25 TBD Final Exam (Scheduled by the registrar)

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