This course examines important issues in corporate finance from the perspective of financial managers.
We build on topics covered in Courses I to III and cover selected chapters from the book “Corporate Finance” by Berk and DeMarzo (see below).
An important part of the course is to apply and develop a deeper understanding of what you learned in these courses by means of (a) a case study and (b) reading recent academic papers (e.g., on the Covid 19 pandemic crisis and corporate finance).
Topics that you learn to apply include
- Fundamentals of Capital Budgeting (Chapter 8) and Valuing Stocks (Chapter 9)
- Cost of Capital (Chapter 12)
- Capital Structure in a Perfect Market (Modigliani-Miller) (Chapter 14)
- Debt and Taxes (Chapter 15)
- Financial Distress, Incentives, and Information Problems (Chapter 16)
- Capital Budgeting and Valuation with Leverage (Chapter 18)
All chapters refer to Berk/DeMarzo, Corporate Finance (3rd – 5th Global Edition, which you can all use).