This course is designed to provide a framework for understanding the determinants of corporate investment, financing, hedging, payout, and executive compensation policies. The course will provide an analysis of the determinants of each policy as well as the implications for shareholder value. While the basic economic insights will be presented through simple examples, the course is quantitative in nature. Course material
The reference textbook is Corporate Finance by Jonathan Berk and Peter DeMarzo, Pearson International Edition, 2nd Edition, (BDM hereafter). This is a reference textbook. I do not require that you buy this book as class notes are self-contained. In addition, we will use several case studies. The cases can be purchased as a course packet online from Harvard Business School Publishing at http://cb.hbsp.harvard.edu/cb/access/16162833. For each case, study questions will be posted on the course website. All necessary course material can be found on the Blackboard website. I will distribute lecture notes in class at the beginning of each topic. Prerequisites
Students are required to have completed Capital Budgeting and Corporate Objectives (FIN 402). Group assignments
Assignments consist of problem sets and case studies. Problem sets will help you practice the economic concepts introduced in class. Case studies will provide you with the opportunity to apply these concepts to real life situations. Assignments must be completed by groups of maximum 4. Assignments must be submitted in hard copy at the beginning of the class. You should submit one assignment per group and specify the names of all team members. Late submissions of homework will not be accepted. Exams
The midterm exam is scheduled on Monday November 19. The exact time and location will be determined during the quarter. The final exam will be scheduled by the Registrar during the final exam period. Both exams are closed book. You need a calculator (no computers). You...
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