CORPORATION FINANCE THEORY AND PRACTICE

Prerequisites & course information

Requisites: FINANCE 700 Course Designation: Grad 50% - Counts toward 50% graduate coursework requirement Repeatable for Credit: No Last Taught: Fall 2026 Learning Outcomes: 1. Explain why, when and how companies raise debt and equity and decide on the mix of both sources of finance. Audience: Graduate 2. Recognize the effect of agency costs – adverse selection and moral hazard - on the capital structure of the firm. Audience: Graduate 3. Explain how firms choose to structure hybrid securities to reduce market frictions. Audience: Graduate 4. Differentiate how firms manage risks both internally as well as with derivative contracts. Audience: Graduate 5. Summarize the different ways firms return money to investors and the logic behind different payout policies. Audience: Graduate Learning Outcomes: 1. Explain why, when and how companies raise debt and equity and decide on the mix of both sources of finance. Audience: Graduate 2. Recognize the effect of agency costs – adverse selection and moral hazard - on the capital structure of the firm. Audience: Graduate 3. Explain how firms choose to structure hybrid securities to reduce market frictions. Audience: Graduate 4. Differentiate how firms manage risks both internally as well as with derivative contracts. Audience: Graduate 5. Summarize the different ways firms return money to investors and the logic behind different payout policies. Audience: Graduate