210 Corporate Finance

This course applies corporate finance concepts to make management decisions. Students learn methods to evaluate financial alternatives and create financial plans in order to get the optimal capital structure. The course also sheds light on important issues in corporate finance from the viewpoint of financial managers who are accountable for making considerable investment and financing decisions. The concept of net present value, suitably adapted to account for taxes, uncertainty, and strategic concerns, is used to analyze how investment and financing decisions interact to shape the value of the firm. A large segment of the lessons cover capital budgeting decisions. Emphasis is placed on the interaction of taxes and the cost of capital. Topics covered in this outline will include leasing and buying decisions. The course also includes a conduct of dividend policy, the CAPM, and capital market efficiency, as they relate to the value-maximization objective of the firm