365-1145-00L  Applied Finance and Investment for Managers

SemesterAutumn Semester 2020
LecturersS. Zaker
Periodicityyearly recurring course
Language of instructionEnglish
CommentExclusively for MAS MTEC students (third semester).


AbstractThe focus is on how financial and investment theory is applied to real world problems. We compete in the economy, but are also exposed to financial markets. The specific point of view, the language of financial markets are discussed using illustrative case studies. Managers will learn how their company is rated for debt financing; and how its value reflects in the “mirror" of private equity funds.
ObjectiveThe course aims to support managers in:

1) Understanding the mechanisms, language, and drivers of the debt and equities markets

2) Apply this understanding to specific corporate situations, such as optimizing the cost of capital (debt and equity) of the firm or projects

3) Use these insights to learn to think and act as an investor e.g. for the firm’s own pension fund
ContentPart 1: A Practical Introduction to the Financial Markets
Your Company’s profile in the mirror of financial markets. How would experts analyze your company, its strengths, and weaknesses?

The financial market eco-system. Understanding the cogs and wheels of financial markets, and the existing checks and balances.

Key actors in the financial markets. How central banks, commercial banks, and institutional investor influence market trends.

The business cycles: How and why economies rhyme into and out of growth? The
mechanism of boom and bust and recessions.

The debt capital market. How companies can benefit from an understanding of the debt market? The importance of financing choices as a competitive advantage.

The equities capital market. How and why equities are issued? How investors categorize the equities markets?

The derivatives market. The origins and importance of derivative markets. The specific characteristics that make them both very useful and extremely hazardous.

The currency markets. Mechanisms of currency hedging in the International markets. The importance of a sound currency strategy to avoid large losses.

Private equity and venture capital. The actors in private debt and equities. The rise of start-ups within a new financial infrastructure.

Hedge Funds. An important new actor in the financial markets.

Initial public offering. How IPOs are organized and executed. The intricacies of the pricing process. When and how are participants disappointed. IPOs as an indicator for the overall market sentiment.


Part 2: Case Studies
Case study 1. How does your pension fund work?
Case study 2. When Activist Hedge Funds approach a company.
Case study 3. Merger and Acquisitions.
Case Study 4. A Financial Market View of your Firm