There are no pre-requisites. Business Organizations is NOT a pre-requisite.
This course will provide an introduction to the economic and financial aspects of corporations. The following topics will be covered: discounting and present value; the cost of capital; the efficient capital market hypothesis; introduction to optimal capital structure of the firm; the theory of financial option; the principal-agent model. The course will also cover the financial and legal aspects of the capital structure of firms: common stock; corporate debt; preferred stock; hybrid financial instruments. Basics on corporate accounting will be provided during the course.
Carney, Corporate Finance – Principles and Practice (2d ed. 2010); articles and lecture notes that will be posted on the web and/or distributed during the course.
I will post class assignments on the course’s TWEN home page. You are responsible for staying informed about assignments.
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Regular class attendance is required. Satisfactory attendance is a minimum of 80% of all scheduled classes.
You are expected to be prepared for and participate in each class. I retain the option to raise your final grade based on voluntary class participation.
2 credits will be assigned based on a two-hour final exam. The extra credit is optional for students who will prepare a short essay on a topic I will suggest during the course.