Corporate Finance Spring 2024 - Session 16: Options in Projects and Project Post-mortems

Master Corporate Finance: From Risk & Valuation to Capital Structure & Real-World Strategy

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13 learners

What you'll learn

Analyze corporate decisions using the principles of shareholder wealth maximization and its alternatives.
Estimate the cost of capital for a firm using risk models, betas, and debt costs.
Evaluate investment projects and acquisitions using cash flow analysis and capital budgeting techniques.
Determine the optimal mix of debt and equity financing and design appropriate dividend policies.

This course includes

34.5 hours of video
Certificate of completion
Access on mobile and TV

Summary

Keywords

Corporate Finance

Full Transcript

In this quiz-shortened session, after the quiz, we looked at the final pieces on investment analysis, starting with side benefits from projects (from small pluses to synergy in acquisitions). We also looked at optionality in projects, i.e., times when you can legitimately override conventional investment metrics to take a project, because you may have the option to delay, expand or abandon the project. Finally, we examined why we do postmortems on past projects as a prelude to both holding people accountable as well as making decisions on whether to continue, divest or abandon projects. Slides: https://pages.stern.nyu.edu/~adamodar/podcasts/cfspr24/session16slides.pdf Post class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/cfovhds/session16test.pdf Post class test solution: https://pages.stern.nyu.edu/~adamodar/pdfiles/cfovhds/session16soln.pdf