The basic issues studied in corporate finance pertain to the valuation of investments, firms and the securities they issue. Included in these analyses is the study of capital budgeting, financing decisions and dividend policy. This course provides an in-depth study of the theory and practice of corporate financial management including a study of the firm's objectives, investment decisions, long-term financing decisions and working capital management.

Initially, we present an overview of finance theory in a world where all future outcomes are known with certainty. This treatment allows us to consider how the theory of choice used to develop financial theory under certainty can be extended to more real-world conditions -- where risk and uncertainty prevail. We then focus our attention on the application of modern financial theory to financial management problems, including capital budgeting decisions, financing decisions, and dividend policy.

This course is designed for students with a general interest in corporate financial theory and its application to financial decision making in the context of the firm. It would be an important component to those students interested in financial investment analysis, project analysis, firm valuation and corporate planning.

The class format will be primarily lecture. In-class problems will be worked and discussed in order to reinforce the concepts and theories described in the lecture. Students are expected to complete the required readings before each class and participate in class discussions. In addition, assigned homeworks must be prepared on time: late homework assignments are not accepted.

Grading:
1. (25%) Problem sets and cases.
2. (30%) Midterm Exam.
3. (35%) Final Exam.
4. (10%) Class Participation