The purpose of this course is to provide you with an understanding of major decisions made by corporate financial managers and familiarize you with the tools used to make these decisions. The first part of the course covers methods used to value investment projects. Particular attention will be given to the methods of weighted-average cost of capital (WACC), and adjusted present value (APV). The second part of the course focuses on issues of corporate financial structure. The focus will be on the choice of financing through equity, debt, and other types of securities and on payout policies through dividends. Specialized topics, such as mergers and acquisitions and corporate hedging, will be covered as time permits.

Business 30000, 33001, 35000 (strict), and 41000 (or 41100). Waivers for 35000 will potentially be granted to students with substantial previous course work in investments or CFA level 2 or above. Previous work experience related to investments and previous coursework in corporate finance do not satisfy the prerequisite for 35000. The course is NOT self-contained; I rely heavily on the knowledge from the other classes. Non-Booth students, including Dougan Scholars, need faculty permission: strict. Cannot enroll in BUSN 35200 if BUSN 20410 taken previously.

Berk and DeMarzo, Corporate Finance (textbook only); electronic course materials will be posted on Canvas.

Based on cases, a midterm exam, a final exam, and class participation. No early final grades.