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Quantitative Corporate Finance

Summer 2014 EMBA Course

B7421-002: Quantitative Corporate Finance

EMBA Saturday Format Electives, Menu E - 04:00AM to 05:00AM

Instructor: Hans Tallis

The course provides fundamental techniques for simulation-based quantitative corporate finance and intuition regarding model-design best practices. We will develop a variety of tools for optimal corporate financial policy in the following areas: cost-of-capital; debt level and structure; interest rate, exchange rate and commodity risk management; and shareholder distribution policy.
Computation-intensive techniques have expanded the field of funding design in new directions, providing better insights about how operating and market risks flow through a firm. Coupled with recent advances in credit strength measurement and constraint-based optimization, we can now tune a capital structure while quantitatively trading off the concerns of debt lenders, equity investors, and management.
Students will produce fully functional simulation models in Excel, allowing Monte Carlo-based company modeling and risk management. The limitations of quantitative approaches and their relationship to classical methods will also be discussed.