FINANCE FOR A CHANGING WORLD
FIN 7517 Finance in a World of Changing Values
(Previously titled: Financing and Valuing Sustainability)
3 elective credits
Entrepreneurial Leaders have different expectations from their employers, their neighborhood, their investments, and as consumers, than their parents and ancestors.
In August 2019, The Business Roundtable (a group of more than 100 of the words largest organizations and led by Jamie Dimon of JP Morgan Chase) changed its statement of "the purpose of a corporation." No longer should decisions be based solely on whether they will yield higher profits for shareholders, the group said. Rather, corporate leaders should take into account "all stakeholders"that is, employees, customers and society writ large.
This course addresses the practicality of finance in this new world. Using quantitative metrics and financial tools students will examine the measurable value of making, avoiding, or innovating in a world where the shareholder is no longer the only master. Students will analyze a range of technologies, strategies, and business models from the perspective of managers, entrepreneurs, and investors, and will be required to understand and communicate the justification for or against them, including the considering the policy issues which encourage or are obstacle to these values. Financial tools such as discounted cash flow, capital budgeting, capital structure, and risk/return analysis will be combined with impact metrics to evaluate the feasibility and financial implications of 'sustainable' products and practices in a variety of industries and applications. Students will learn how to evaluate the cost of externalities and develop an increased familiarity with existing financial tools.
Two life long practitioners steeped in this tradition in public markets, project finance, energy, sustainability, and private equity will take students on a quantitatively challenging and intellectually stimulating course full of lively debate, and tips from the trenches.
Prerequisites: FIN7200 or FIN7800
Course Level:MSF Elective (Grad),Graduate Elective (Grad)