Advanced Financial Management

Catalog description

This course builds on the topics covered in the core finance class. The course will cover advanced corporate finance theory and how one translates theory into financial decisions. Topics include firm capital structure, including Jensen’s free cash flow (moral hazard), pecking order (adverse selection), and agency conflicts between stockholders and bondholders; capital budgeting when financing considerations are included; external financing, including leasing and security issuance to the public; working capital management, including cash, credit, and inventory management; dividend policy and share repurchases; mergers and acquisitions; corporate governance; options valuation in the context of convertible bonds and warrants; the valuation of real options; and corporate risk management. Special topics such as international finance may also be covered.