College of Business (WBUAD)
Advanced Corporate Finance
Airlines, airports, and manufacturers are complex, capital-intensive enterprises operating in volatile, international markets. Consequently, participants in the industry rely on a variety of financial instruments to raise necessary capital and to manage financial risk arising from uncertain demand and supply markets. While building on the finance concepts developed in Managerial Finance, this course examines the complicated financial structures and advanced financial tools employed in the aviation industry. Concepts covered include project finance,financial derivatives (real options, interest rate swaps and hedges, forward contracts and futures), financial modeling using simulation and optimization techniques, and international financial management (foreign exchange exposure management, foreign investment and capital allocation, multinational cash and tax management). The course relies on current articles and cases to explore the application of advanced financial concepts to the aviation industry.
This course is designed to provide the student with a conceptual understanding ofadvanced financial concepts, and the skills and insight to apply these concepts within theaviation industry.
Upon completion of the course the student will be able to:1. Estimate Free Cash Flow to the Firm (FCFF) and Free Cash Flow to Equity from financialstatements. Differentiate between Free Cash Flow to the Firm (FCFF) and Free Cash Flow toEquity (FCFE) and forecast FCFF and FCFE to value a company or a project.2. Explain the difference between operational and capital leases within the aviation industry and capital budgeting tools used to make lease, buy decisions and fractional ownership decisions.3. Analyze and explain the reasons for mergers within the aviation industry.4. Explain the reasons for financial distress within the aviation industry and understand thebankruptcy/reorganization process.5. Apply the tools available to the airline industry to manage their exposure to risk fromfluctuations in foreign currency and fuel prices.
Located on the Daytona Beach Campus, the Jack R. Hunt Library is the primary library for all students of the Worldwide Campus. The Chief Academic Officer strongly recommends that every faculty member, where appropriate, require all students in his or her classes to access the Hunt Library or a comparable college-level local library for research. The results of this research can be used for class projects such as research papers, group discussion, or individual presentations. Students should feel comfortable with using the resources of the library.
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