Corporate Finance

(2.5 Credits)

This course teaches how to make optimal investment and financing decisions. Specific topics include valuation techniques (net present value rule), a discussion of the many shortcomings of the popular internal rate of return rule, real options, extracting cash flows from accounting data, estimating a project's or firm's cost of capital, the choice between debt and equity, and the effect of financing decisions on investment decisions (using the popular ""WACC"" method).