Development of a framework that is useful for understanding a broad range of important corporate financial decisions. Substantial emphasis will be placed on discussion of the determinants of corporate financing and payout policies, alternative methods of security issuance, and mergers and acquisitions.
Athena Title
Corporate Finance Theory
Equivalent Courses
Not open to students with credit in FINA 4200E
Prerequisite
FINA 3000 or FINA 3000H or FINA 3000E
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Student Learning Outcomes
Students will analyze and interpret corporate financial statements to assess firm performance.
Students will apply valuation methods (DCF, WACC, multiples) to value securities, projects, and firms.
Students will evaluate financing alternatives, including capital structure, payout policy, and security issuance, and assess their impact on firm value.
Students will recognize and explain the limitations of applying corporate finance theory to real-world problems, including mergers, distress, and stakeholder impacts.
Students will communicate financial reasoning clearly and collaborate effectively in problem-solving activities.
Topical Outline
Introduction to corporate finance: goals and principles
Financial statement analysis and forecasting
Valuation techniques: DCF, multiples, WACC
Capital budgeting and investment decision rules
Cost of capital and firm and security valuation
Capital structure: leverage, risk, and firm value
Payout policy (dividends and share repurchases)
Security issuance, risk management, and mergers & acquisitions
Applications, limitations, and real-world challenges
Institutional Competencies
Analytical Thinking
The ability to reason, interpret, analyze, and solve problems from a wide array of authentic contexts.
