Strategic Finance Lecture Summary
Learning goals Strategic Finance Y4
1. Evaluate the current financial situation of an international listed medium enterprise in
order to recommend the board to ensure the continuity of the company.
2. Analyse the financial effects of a change in the strategy of a company in order to
recommend the board to ensure the continuity of the company.
3. Apply the value based management concept and distinguish the key drivers of value
in order to recommend the board.
4. Recommend possibilities to finance the new strategy in order to advice the board to
ensure the continuity of the company.
Calculate, read numbers, but more importantly to understand them and make conclusions
out of it with arguments.
Literature for Strategic Finance:
Training 1: Financial statements – chapter 2
Training 2: Analyse financial performance – chapter 1-3
Training 3: Risk and return – chapter 1 + 4 + 5
Training 4: Valuation – chapter 6 + 7
Training 5: Valuation – chapter 8 + 9
Training 6: Valuation + recap
1
,Lecture 1: Value Based Financial Management
Most important stakeholders of company, of course all stakeholders are important. In
finance, the most important stakeholder in the company is the shareholder. (Because he is
the owner of the company). ALWAYS mention that the actions that a company should take
(in exam with recommendation) are being done to benefit the shareholder because they are
the most important.
Valuation
Shareholders invest capital in the company and the company should create value that is
paid out in dividend to the shareholders.
Main goal of a company: to serve and to please the owners, by creating value (for the
shareholders).
- Shareholders value model
- There is critique on this as there is more than just this model.
More modern ways to look at a company:
- Integrated Reporting
- Stakeholder theory
Economics have critique on these models as they believe the traditional shareholders
value model.
Different types of values, it’s subjective.
Valuation methods to value a company
1. Book value (based on the past and related to accounting rules)
2. Market value (now)
3. Discounted cash flow value (future, best one)
2
, The future of the value of the company is important.
Valuation 2
3
Learning goals Strategic Finance Y4
1. Evaluate the current financial situation of an international listed medium enterprise in
order to recommend the board to ensure the continuity of the company.
2. Analyse the financial effects of a change in the strategy of a company in order to
recommend the board to ensure the continuity of the company.
3. Apply the value based management concept and distinguish the key drivers of value
in order to recommend the board.
4. Recommend possibilities to finance the new strategy in order to advice the board to
ensure the continuity of the company.
Calculate, read numbers, but more importantly to understand them and make conclusions
out of it with arguments.
Literature for Strategic Finance:
Training 1: Financial statements – chapter 2
Training 2: Analyse financial performance – chapter 1-3
Training 3: Risk and return – chapter 1 + 4 + 5
Training 4: Valuation – chapter 6 + 7
Training 5: Valuation – chapter 8 + 9
Training 6: Valuation + recap
1
,Lecture 1: Value Based Financial Management
Most important stakeholders of company, of course all stakeholders are important. In
finance, the most important stakeholder in the company is the shareholder. (Because he is
the owner of the company). ALWAYS mention that the actions that a company should take
(in exam with recommendation) are being done to benefit the shareholder because they are
the most important.
Valuation
Shareholders invest capital in the company and the company should create value that is
paid out in dividend to the shareholders.
Main goal of a company: to serve and to please the owners, by creating value (for the
shareholders).
- Shareholders value model
- There is critique on this as there is more than just this model.
More modern ways to look at a company:
- Integrated Reporting
- Stakeholder theory
Economics have critique on these models as they believe the traditional shareholders
value model.
Different types of values, it’s subjective.
Valuation methods to value a company
1. Book value (based on the past and related to accounting rules)
2. Market value (now)
3. Discounted cash flow value (future, best one)
2
, The future of the value of the company is important.
Valuation 2
3
