Corporate finance is concerned with a corporation's acquisition and allocation of capital. Students apply more advanced concepts in corporate finance in a decision making context. Valuation is discussed as a unifying theme. This includes such issues as how to value a firm that is not publicly traded, how to value a potential merger, and how to value an investment project. Students assess how the firm's capital structure or its dividend policy might impact firm value. Students examine the valuation of investment projects and the valuation of a firm that is not publicly traded. Students study the underlying factors that impact the value of a financial option. The role of mergers and acquisitions in the growth of a firm is considered, as well as the impact of these deals on the shareholders of both the acquiring and acquired firms. Course materials include decision oriented cases and readings from professional journals.
Prerequisites: BUS 315 with C- or higher.