Course Description

This is an introductory course on corporate finance. The course will focus on how corporations structure funds, manage internal finances, and evaluate investment projects. Other topics covered will be the time value of money, valuation of stocks and bonds, capital market theories, the cost of capital and corporate cash management.

Course Learning Outcomes

Upon completion of this course, students will be able to:

• Appreciate the role of finance and financial planning in a corporation;
• Understand and be able to make present value and future value calculations;
• Comprehend the role and use of corporate capital budgeting and investment decision making;
• Understand basic theories of the risk and return relation and be able to analyze the company risk;
• Understand the implications of capital structure and costs of capital;
• Comprehend the role of mergers and acquisitions including price reaction and synergy effect;
• Appreciate the effect of financial derivatives in corporations’ lives.

*Course content subject to change