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.

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.

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.

Based on cases, a midterm examination (optional), a final examination, and class participation. Cannot be taken pass/fail.