This course is to provide students with a foundation in corporate finance. Students will learn the basic concepts and terminologies of finance used by managers and investors. Students will gain a knowledge of both theories and applications in making investment and financing decisions. Students will also develop a framework firmly rooted in valuation for systematically thinking about financial problems.
Demonstrate knowledge of the role of financial management in a corporation and the financial environment of business.
Explain the time value of money concept and demonstrate the quantitative skills associated with cash flow valuation.
Describe features of bonds and stocks and apply the discounted cash flow technique to value them.
Employ and compare various investment criteria to make investment decisions.
Construct pro forma financial statements and apply the discounted cash flow technique to value entire businesses.
Understand the risk and return trade-off, calculate appropriate risk and return measures, and estimate the cost of capital used in investment and company valuation.
Discuss the theories and real-world considerations related to debt and payout policy.