The purpose of this note is to act as a guide for teachers, it has no place in a classroom | Project finance includes the development of a legally independent job company funded with nonrecourse debt with the aim of investing in a single-purpose industrial advantage. Through job companies, an amount that's grown and will continue to grow rapidly in the years ahead, businesses funded nearly $220 billion worth of capital expenditures in 2001. The essential topic of the lessons is that structure matters, which stands in sharp contrast to the neo-classical view of the company as a black box production function and the assumption underlying Modigliani and Miller's first irrelevance proposition that lending and investment are separable and independent tasks. Through this class, students learn how various aspects of project construction influence managerial incentives to create value and manage risk. Ultimately, students learn the best way to increase value through both investment and funding choices.
This note describes the course's essential themes, structure, and content. (Designed for teachers interested in teaching a class on project finance.
Publication Date: 07/11/2011
This is just an excerpt. This case is about Finance
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