FINC 668 Valuation and Corporate Combinations (4)

This course examines methods for measuring and managing the value of companies. Valuation methodologies studied include discounted cash flows, discounted abnormal earnings, comparables, liquidation, replacement cost, and book value. These methodologies are applied to investment decisions related to control transactions. Among the transactions studied are mergers, acquisitions, hostile takeovers, going private transactions (MBOs and LBOs), asset restructuring, and voluntary and involuntary liquidation. Methods for creating takeover defenses also are developed. The influences of the legal and regulatory environment as well as competition in input and product markets are considered in developing a framework for understanding merger waves and industry consolidation. Prerequisite(s): Full-Time- ACCT 602 Cost Accounting (2) or ACCT 652 Accounting Information and Control Systems (4) and FINC 604 Managerial Finance (2) or FINC 614 Finance (4) and FINC 614B Advanced Financial Management (2). Fully Employed- FINC 655 Financial Management of the Firm (4).

Grading Basis: Graded