Corporate Finance

1 Unit · Undergraduate

Topics include capital budgeting; how companies determine what an appropriate discount rate would be for a given capital investment; the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Theory (APT) models used to estimate a firm's cost of equity; detailed consideration of how beta is estimated for the CAPM; how a company derives its weighted average cost of capital (WACC); the dividend policy decision and capital structure theory; financial planning models; the adjustments typically made to financial statement data to accommodate the needs and viewpoints of financial analysts and investors; corporate risk management (hedging techniques).