Corporate Finance

Course Description

This course covers the analytical tools and financial theory necessary to make sound investment decisions and to understand how securities are priced. This includes methods for both individuals and corporations to choose among alternative investments, the choice of financing these investments with debt or equity, and for corporations, the choice of paying dividends to shareholders. The central focus of the course is to provide:

1. An emphasis on intuition— underlying ideas are discussed in general terms and then by way of examples that illustrate in more concrete terms how a financial manager might proceed in a given situation.
2. A unified valuation approach— net present value (NPV) is treated as the basic concept underlying corporate finance. Every subject covered is firmly rooted in valuation, and care is taken to explain how particular decisions have valuation effects.
3. A managerial focus— the authors emphasize the role of the financial manager as decision maker, and they stress the need for managerial input and judgment.

The aim is to provide a basic understanding of the important financial assets available in the capital markets as well a basic knowledge of corporate financial management problems. The primary goal of this course is to impart the knowledge to allow you to intelligently solve practical business problems. To achieve this goal, it is crucial that a student have a sound understanding of finance theory. As such, portions of the course will be theoretical in nature, often requiring quantitative analysis

Textbook order ebook (online viewing option recommended) 

Ross, Stephen A.; Westerfield, Randolph W.; Jordan, Bradford D. Fundamentals of Corporate Finance, Standard Edition, 9th ed. McGraw-Hill: 2010. ISBN 9780073382395;
White, Mark A. Financial Analysis with an Electronic Calculator. McGraw-Hill: 2007. ISBN 9780073217093.