|The purpose of this course is to teach you the basics of corporate finance. Corporate
finance is about making the right investment, financing and restructuring decisions to
create shareholder value. This requires learning valuation methods: valuation of
projects, valuation of companies and valuation of strategic options. Second, to illustrate how value can be created by (1) capital budgeting decisions (2) capital structure policy (3) raising equity through rights issues, public issues and IPOs (4)
returning funds to shareholders through dividend payments and share repurchase and (5) corporate restructuring such as mergers and acquisitions, and leveraged buyouts.
Weekly homework assignments will be distributed. This homework will count for 10% of the grade. Homework can be group work as long as the number of group members does not exceed 5. Although the homework only counts for a small
percentage of your grade, it will be a good preparation for the midterm and final exam. Class participation will also count for 10% of the grade.
To cover the material, I will mostly use lectures. However, in order to convince students that what we learn can be applied in practice, we also cover two case studies.