10 August 2018
The objective of this course is to provide a better understanding of corporate finance issues confronting entrepreneurial firms. The issues will be explored by considering the differences between firms for which the standard corporate finance model is appropriate and firms for which the investment and financing issues are interdependent. An objective of this class is to further develop the framework used for thinking about finance issues and develop experience in applying this framework to making useful business decisions. Although the learning objectives will be focused on entrepreneurial ventures, they have direct application in more standard corporate, investments, insurance, and banking finance.
This class will take a pragmatic look at some of the financial issues confronting entrepreneurial ventures. The course uses an existing actual entrepreneurial venture to examine issues that arise with entrepreneurial finance. In 2015, the course evaluated the potential market size for an anti-infective that addressed potential complications associated with diabetic foot ulcers. In 2014, the course examined the license value of an anti-infective that addressed infections with implanted orthopedic medical devices. In 2013, the class examined a Danish energy venture that uses energy from the sun to decrease the energy costs of cooling buildings by taking advantage of thermodynamic properties of vacuums. Previous year’s projects included analyses of products addressing the European and North American bovine mastitis markets and products addressing the biofouling of ship’s hulls (biofouling costs the US Navy at least $1 billion each year, likely more for Maersk shipping).
By the conclusion of this course, you should be able to:
Forecast Financial Needs ‐ Use simulation and scenario analysis to analyze strategic financial options available to a firm, identify and communicate the optimal option, and estimate and describe a firm’s financial needs based on the recommended course of action.
Identify and Evaluate Real Options – Qualitatively identify real options available with firms or projects, identify the parameters that are important to the valuation of the options, indicate how these options will affect the value of the project or the firm, and use quantitative techniques to provide approximate valuations for these options.
Value the Venture – Understand and be able to explain the difference between the venture valuation models and the standard corporate finance evaluation model from both the investor and entrepreneur’s points of views.
Identify situations where the theories of financial management can be applied to decisions.
Recommend and justify decisions, including decisions arising from ambiguous or unfamiliar information.
Orally present your analysis, recommendations, and justification.
Business and Finnace students
EUR 692: Any student with a preapproval from a Danish Institution or a nomination from an International Partner: No Fee
EU/EEA students without a preapproval or nomination: 692 EUR
NON-EU/EEA students without a preapproval or nomination: 1717 EUR
Books, course materials, social programme, and housing are not included in the fee.