Advanced Corporate Finance

Catalog description

Advanced corporate finance provide a comprehensive grounding in corporate financial policies, strategies and managerial decisions as they relate to an organization’s capital structure and capital investment decisions and projects; governance and complex financial ownership structures; principal-agent stakeholder relationships and conflicts; dividend and repurchase issues; mergers, acquisitions, and divestitures; financial distress, liquidation and resolution; risk management and insurance; and economic rationalization. Using theoretical and empirical studies and practices, the course will expose students to the Modigliani-Miller (M&M) proofs of capital structure irrelevance; financial decisions under ideal or perfect market conditions and market imperfections; Capital Asset Pricing and Black-Scholes Option Pricing Models; information asymmetry between a publicly traded firm and outside investors; the role of capital markets, the government, board oversight, the firm’s industry, and debt and equity management on the firm’s financial policies and strategies and organizational architecture will be studied and applied. Prerequisite: MBA 742 or permission of the director or chair