|The purpose of this course is to provide you with an understanding of major decisions made by corporate financial managers and familiarize you with the tools used to make these decisions. The first part of the course covers methods used to value investment projects. Particular attention will be given to the methods of weighted-average cost of capital (WACC), and adjusted present value (APV). The next part of the course focuses on issues of corporate financial structure. The focus will be on the choice of financing through equity, debt and other types of securities and on payout policies through dividends. The course also addresses the impact of the agency problem and asymmetric information. Specialized topics, such as mergers and acquisitions, corporate hedging, bankruptcy, real options, IPOs will be covered.|
|Berk and DeMarzo, Corporate Finance; CoursePack. The syllabus will be posted on Chalk. Please read the syllabus and do the assigned readings before the first class.|
|Based on cases (20%), Class participation and problem sets (15%), midterm exam (25%) and final exam (40%). Midterm score can be replaced by the final score if the latter is higher than the former. No auditors.|
|Business 30000, 33001, 35000 (strict), and 41000 (or 41100) are strongly recommended. Business 35000 is a strict prerequisite and cannot be taken concurrently.
Description and/or course criteria last updated: 06/12
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