Classes Paris · Detailed program
🇫🇷 Paris · 4-week study abroad

Introduction to Corporate Finance:
The Paris Class

Twelve class sessions across four weeks for business undergraduates — most encountering finance for the first time. The universal toolkit (time value, inflation, risk, cash flow, valuation) anchored in French-market context: OAT yields, the CAC 40, LVMH, Pernod Ricard, Air Liquide. Built so a non-finance major leaves with the confidence to read a 10-K and value a public company.

4
Weeks
12
Class sessions
4
Homework sets
Course overview

What this class is — and isn't

This is a four-week introductory corporate finance class, taught in Paris as a study-abroad program. The students are business majors at the undergraduate level: some intend to major in finance, most don't, and for nearly all of them, this is the first finance course they've taken. The pedagogical goal is not to make them into analysts in four weeks — it's to build a sturdy mental model of how money compounds, how firms make capital decisions, and how a public company's value is estimated, so that subsequent finance coursework (or business-school applications, or first jobs) builds on solid foundations.

The class uses the Globefin online lessons as pre-class reading. Students arrive at each session having read the relevant lesson and worked through its quiz. Class time is for synthesis, calculation practice, and worked examples — primarily anchored in French companies and the French market. This is what makes the Paris class distinctive: students see the same universal framework applied through CAC 40 firms (LVMH, TotalEnergies, Air Liquide, Pernod Ricard), French sovereign-debt markets (OATs), and Paris-specific institutional context.

Audience and prerequisites

Business undergraduates, sophomore through senior year. No finance prerequisites. Comfort with high-school algebra is sufficient. Excel familiarity helps but is not required — toolkits are provided. Students should expect to spend roughly 4-6 hours per week on pre-class reading and lesson quizzes outside of class time.

Learning objectives

By the end of the four weeks, students should be able to:

Objective 01

Compute time value of money — present value, future value, annuities, perpetuities, effective annual rate — and apply these to bond pricing, mortgage calculations, and personal financial decisions.

Objective 02

Distinguish nominal from real returns, understand how inflation erodes purchasing power, and adjust expected returns for inflation across multiple decades.

Objective 03

Apply capital-budgeting rules — NPV, IRR, payback — to evaluate corporate investments, and understand why NPV is the theoretically correct decision rule.

Objective 04

Read the three financial statements as a connected system, build a simple cash-flow forecast for a public company, and compute free cash flow to the firm.

Objective 05

Quantify risk-return tradeoffs using beta, the CAPM, and historical equity-market statistics. Understand the equity risk premium and what drives differences in beta across firms.

Objective 06

Estimate cost of capital — cost of equity via CAPM, after-tax cost of debt, and the WACC — for a public firm using market data.

Objective 07

Apply market-based valuation using P/E, EV/EBITDA, and EV/Sales multiples. Identify good comparables and reason about why multiples differ across firms and sectors.

Objective 08

Build a discounted cash flow valuation of a public company, defend assumptions, and run sensitivities — the synthesis exercise that ties together everything from the four weeks.

Week 01 · 2 sessions

Time Value & Inflation

The universal toolkit
Week 01

Readings & content

Pre-class readings
What this week covers
The foundational math behind every finance decision. Discounting (translating future cash to present), compounding (translating present cash to future), and the shortcuts for the two structures that come up most: annuities (level payments for a fixed term) and perpetuities (level payments forever). Students leave able to price a bond, value a mortgage, and reason about how small differences in discount rate become huge in present value over long horizons — anchored in the OAT 10-year.
Then how inflation erodes purchasing power, and how to distinguish nominal from real returns. The Fisher equation: (1 + nominal) = (1 + real) × (1 + inflation). Why the simple approximation (real ≈ nominal − inflation) breaks down at high inflation rates. Students learn to reason about purchasing power across decades, not just years — anchored in 80 years of French inflation history (Trente Glorieuses, post-2022 spike).
📝 Homework 01

Time Value & Inflation problem set

Download
paris-homework-week-1.xlsx — 11 questions · 100 points · ~90 minutes.
What this homework covers
Basic questions of time value of money, present value, future value and inflation.
Week 02 · 4 sessions

The Firm, Capital Budgeting, Cash Flow & Risk

From personal math to firm decisions
Week 02

Readings & content

What this week covers
How firms decide whether to invest. The three decision rules — NPV, IRR, and payback period — what each measures, and why NPV is the theoretically correct rule. Students work through a multi-year investment problem and see how NPV and IRR can disagree (mutually exclusive projects, scale differences).
The firm as a legal entity, its capital structure (debt vs. equity), the role of the financial manager, and the fiduciary duty owed to shareholders. The classic shareholder-value framing (Friedman 1970) and its critics. Why agency problems matter: principal-agent conflicts between owners and managers, between controlling and minority shareholders, and between debt and equity holders.
How the income statement, balance sheet, and cash flow statement connect into a single forecasting model. Students build a simple three-statement projection: revenue and margin assumptions flow to net income, working-capital and capex assumptions flow to cash flow, retained earnings tie back to the balance sheet. The output is the free cash flow to the firm — the key input to DCF valuation in Week 4.
Finally, the two empirical facts that anchor modern finance: higher risk has historically been compensated with higher returns, and diversification reduces risk without (much) reducing return. The equity risk premium, the distinction between systematic and idiosyncratic risk, and beta as the measure of systematic risk that survives diversification — setting up the CAPM in Week 3.
📝 Homework 02

Capital Budgeting, Cash Flow & Risk problem set

Download
paris-homework-week-2.xlsx — 6 problems · 100 points · ~2 hours.
What this homework covers
Six problems covering NPV of a US infrastructure project, IRR-vs-NPV decision on a French factory expansion, free-cash-flow construction from a French firm's simplified financials, CAPM expected return for a US tech firm, two-asset portfolio risk, and a synthesis capital-budgeting decision integrating governance considerations.
Week 03 · 3 sessions

Capital Structure, Cost of Capital & Multiples

How firms finance and how the market values them
Week 03

Readings & content

What this week covers
Why some firms finance themselves heavily with debt (utilities, telecoms) and others almost entirely with equity (luxury, tech). The trade-off theory: tax shield benefits of debt vs. costs of financial distress. Modigliani-Miller as a baseline that highlights what real-world frictions actually matter. Students leave able to read a public company's capital structure and reason about whether it looks aggressive, conservative, or in distress.
Putting risk-return and capital structure together to compute the WACC. Cost of equity via CAPM (risk-free rate, beta, equity risk premium), after-tax cost of debt from credit spreads, then the weighted average using market values of debt and equity. The discount rate every DCF in Week 4 will use. Students work through a hand-computation for a CAC 40 firm.
Valuation by comparison. The mainstream multiples: P/E, EV/EBITDA, EV/Sales, P/B. What each one measures, what business types it works best for, and how to pick a defensible peer set. Why fundamentals drive multiples: growth, margins, returns on capital. The week ends with a hands-on workshop in which students value a real French mid-cap by comparables and defend their assumptions.
📝 Homework 03

Capital Structure, WACC & Multiples problem set

Download
paris-homework-week-3.xlsx — 6 problems · 100 points · ~2 hours.
What this homework covers
Six problems covering CAPM cost of equity for a US firm, after-tax cost of debt for a French firm, a full WACC build for a CAC 40 company, capital-structure ratio analysis of a US firm against US peers, multiples valuation of a French mid-cap against European TIC peers, and reconciling multiples with a simplified DCF result.
Week 04 · 3 sessions

Income-Based Valuation — the DCF Capstone

Synthesis of the four weeks
Week 04

Readings & content

Pre-class readings
Corporate Finance Module 07 · Income-Based Valuation — read in full for the first session; re-read with focus on sensitivity analysis for the second.
What this week covers
The capstone calculation that synthesizes everything from Weeks 1–3. Project free cash flow (Week 2) for 5–10 years, compute a terminal value using either a perpetuity formula or an exit multiple, discount everything at the WACC (Week 3), subtract net debt to get equity value, divide by shares to get per-share value. Students walk through every step on a real CAC 40 firm.
The DCF is only as good as its assumptions, so the next move is stress-testing. Sensitivity tables on growth rate, margin, and WACC. Scenario analysis (base, bull, bear). How professional analysts use DCFs not to produce point estimates but to frame the range of plausible values.
The week closes with the group valuation project: pairs of students value an SBF 120 firm of their choice, build the full DCF, run sensitivity and scenarios, and present a defended valuation to the class. This is the synthesis exercise that ties the four weeks together — and the work students take into their next finance course, internship, or business-school application.
📝 Homework 04

DCF Valuation problem set

Download
paris-homework-week-4.xlsx — 6 problems · 100 points · ~2.5 hours.
What this homework covers
The capstone: build a full DCF valuation of a French CAC 40 industrial. Project 5-year free cash flow, compute terminal value by both Gordon-growth and exit-multiple methods, compute WACC, discount and aggregate to per-share value, run a 3×3 sensitivity grid on terminal growth and WACC, and write a buy/hold/sell recommendation.
Reference · Optional

Paris-based enrichment

Optional field activities

Several Paris-specific opportunities can deepen the in-class material beyond the classroom:

  • Euronext Paris — the French stock exchange, located at 14 Place des Reflets in La Défense (formerly Palais Brongniart). Limited public access but possible to arrange educational visits in advance.
  • Banque de France — the central bank, with a small public museum on monetary history. Useful adjunct to the Week 1 inflation discussion.
  • La Défense walking tour — France's CBD, home to TotalEnergies, BNP Paribas, Société Générale, Engie, and many other CAC 40 headquarters. A 90-minute walking circuit shows students where the firms they're studying actually operate.
  • LVMH headquarters at 22 avenue Montaigne — students can walk past the building and see the surrounding luxury district (Avenue Montaigne is the heart of Paris luxury retail). Useful for the Week 2 material on the firm and fiduciary duty.
  • Pernod Ricard headquarters at 5 rue Victor Hugo (formerly 12 place des États-Unis) in the 16th arrondissement — students could visit if a firm tour can be arranged. The firm has done some student outreach historically.
  • Station F — the world's largest startup campus, in the 13th arrondissement. Useful for the discussion of how French firms scale and finance growth, and a counterpoint to the established CAC 40 firms studied throughout.

None of these is required. The class is fully deliverable in a classroom with the lessons and toolkits as the primary resources. Field trips are bonus material if the calendar allows.