Course Detail

Corporation Finance (35200)

Course Description by Faculty

  • Carlin, Bruce
  • Content

    This course examines the decisions faced by corporate financial managers. We will study several frameworks for evaluating corporate projects and develop techniques for assessing projects with inherent flexibility (real options), which are often central to a firm’s core strategy. We will also study how financing decisions affect firm value. Finally, we will consider the ramifications of corporate modeling to issues such as investment banking, equity trading, and market efficiency.

    This is a tools course. That is, while we will cover the theory that is necessary to appreciate why we do certain things in the real world, the course will focus on techniques that will make you a better corporate decision-maker.

    We will cover the following topics:

    • Valuing risky corporate assets
    • Capital structure decisions
    • WACC and APV
    • Foundations of option pricing
    • Real option valuation
    • Corporate risk management
    • Model uncertainty
    • Implications for investment banking and strategic trading
  • Prerequisites

    Business 30000, 33001, 35000 (strict, cannot be taken concurrently), and 41000 (or 41100) are required. Waivers for 35000 can be given for previous achievement of CFA level 2 or above. Previous work experience does not satisfy any of the prerequisites.

    Cannot enroll in BUSN 35200 if BUSN 20410 taken previously.
    Restrictions

    • Strict Prerequisite

  • Grades
    Grades

    • Mandatory attendance week 1

  • Syllabus
  • Autumn 2022Section: 35200-01M 8:30AM-11:30AMHarper CenterC02In-Person Only
  • Autumn 2022Section: 35200-02T 8:30AM-11:30AMHarper CenterC02In-Person Only
  • Autumn 2022Section: 35200-81M 6:00PM-9:00PMGleacher Center200In-Person Only
Description and/or course criteria last updated: June 30 2022 
  • Kashyap, Anil
  • Content
    This course analyzes the major decisions facing corporate financial managers. It examines investment decisions, capital structure choice, and mergers and acquisitions. My primary objective is to teach you how to value a corporation. A detailed week by week syllabus and answers to a set of frequently asked questions will be posted by November 1 on the canvas class web page. Note that my policy on case preparation differs from some others teaching this class - see the class web site for details.  Note that the reason why I require 35000 as a strict prerequisite is that we will use the capital asset pricing model within the first 2 weeks of class and we will use Black Scholes during the first half of class. So taking 35000 concurrently does not work.  
  • Prerequisites
    Business 30000, 33001, 35000 (strict), and 41000 or 41100. Cannot enroll in BUSN 35200 if BUSN 20410 taken previously.
    Restrictions

    • No non-Booth Students

  • Materials
    Berk and DeMarzo, Corporate Finance.  
  • Grades
    Based primarily on three 40-minute quizzes and a final exam. I will also have a tiny portion of the grade determined by case write-ups. Most of the grade is determined by the final exam. I am totally inflexible about allowing people to take the final outside of the scheduled time; if you cannot sit for the final during the scheduled time, find another section to take. No auditors.
    Restrictions

    • No auditors

  • Syllabus
  • Winter 2023Section: 35200-01T 8:30AM-11:30AMHarper CenterC02In-Person Only
  • Winter 2023Section: 35200-81T 6:00PM-9:00PMGleacher Center308In-Person Only
Description and/or course criteria last updated: December 21 2022 
  • Noel, Pascal
  • Content
    The purpose of this course is to provide you with an understanding of major decisions made by corporate financial managers and to familiarize you with the tools used to make these decisions. The first part of the course covers methods used to value investment opportunities. Particular attention is given to discounted cash flow valuation, including 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, corporate hedging, bankruptcy, and real options will be covered as time permits.
  • Prerequisites
    Business 30000, 33001, 35000 (strict), and 41000 (or 41100). Waivers for 35000 potentially granted only 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. Cannot enroll in BUSN 35200 if BUSN 20410 taken previously.
  • Materials
    Berk and DeMarzo, Corporate Finance (only textbook, do not need the kit); electronic course materials will be posted in Canvas. The course description and class schedule will also be posted in Canvas.
  • Grades
    Based on cases, a midterm examination (optional), a final examination, and class participation. Cannot be taken pass/fail.
    Grades

    • Allow Provisional Grades (For joint degree and non-Booth students only)

    Restrictions

    • No pass/fail grades

  • Syllabus
  • Spring 2023Section: 35200-01F 8:30AM-11:30AMHarper CenterC02In-Person Only
  • Spring 2023Section: 35200-02F 1:30PM-4:30PMHarper CenterC02In-Person Only
  • Spring 2023Section: 35200-85S 1:30PM-4:30PMGleacher Center406In-Person Only
Description and/or course criteria last updated: March 14 2023 
  • Vermaelen, Theo
  • Content
    The purpose of this course is to teach you the basics of corporate finance. Corporate finance is about making the right investment, financing and restructuring decisions to create shareholder value. This requires learning valuation methods: valuation of projects, valuation of companies and valuation of strategic options. Second, to illustrate how value can be created by (1) capital budgeting decisions (2) capital structure policy (3) raising equity through rights issues, public issues and IPOs (4) returning funds to shareholders through dividend payments and share repurchase and (5) corporate restructuring such as mergers and acquisitions, and leveraged buyouts.

    Weekly homework assignments will be distributed. This homework will count for 10% of the grade. Homework can be group work as long as the number of group members does not exceed 5. Although the homework only counts for a small percentage of your grade, it will be a good preparation for the midterm and final exam. Class participation will also count for 10% of the grade.

    To cover the material, I will mostly use lectures. However, in order to convince students that what we learn can be applied in practice, we also cover two case studies.
  • Prerequisites
    Bus 30000, 33001, 35000 and 41000 (or 41100): strict. Cannot enroll in BUSN 35200 if BUSN 20410 taken previously.
    Restrictions

    • Strict Prerequisite

  • Materials
    The textbook for the course is Berk and DeMarzo (BD), Corporate Finance, 5th edition. There are also course materials available in Canvas that include extra readings and cases for the class. Lecture notes will be handed out during the class.
  • Grades
    - Midterm: 40% (open book)
    - Final: 40% (open book)
    - Homework: 10%
    - Class participation: 10%

    The midterm will cover all the material during the first 4 weeks. The final will cover all material covered during the last 4 weeks.
  • Syllabus
  • Summer 2023Section: 35200-81F 6:00PM-9:00PMGleacher Center206In-Person Only
  • Summer 2023Section: 35200-85S 1:30PM-4:30PMGleacher Center206In-Person Only
Description and/or course criteria last updated: March 28 2023