Corporate finance course

Diversification

Engaging into several activities allow the risk to reduce markedly.
• To have the same risk and return of the market, we can buy all the market, but when we buy from 20 to 30 stocks, the diversiable risk disappears and only remains the unique/systematic/market risk. We bear only the non-diversifiable risk, that is to say the market risk.
• To reduce the risk of our market, we can also diversify, investing in different markets. But diversification doesn't work well in these days: all markets evolve in the same directions
• Diversification is a good thing for the investor, but not inevitable for companies. There’s no premium for firms that diversify, because each investor can diversify itself.

Betas and value additivity >>


Corporate finance

PART ONE: CAPITAL EXPENDITURE
The present value
Investment decisions
Practical problems in capital budgeting
Firms evaluation

PART TWO. BASICS OF FINANCE
The financial markets
Options
The market efficiency
Risk
Mergers, Acquisitions, and Corporate Control
International Financial Management

PART THREE FINANCING DECISIONS
Corporate financing
Dividend policy and capital structure

PART FOUR FINANCIAL MANAGEMENT
Financial planning
Short-term financial management


Course created and updated by Dr David Chelly, PhD in Management sciences from the University of Tours.