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AP/ADMS 4541

Applied Corporate Finance

3.0 credits

Fall 2026

Topics

  • Cash management
  • Inventory models
  • Receivables and payables
  • Trade credit and marketing
  • Product pricing
  • Capital budgeting
  • Venture financing
  • Empirical capital-structure research

Readings

  • Highly recommended: John Zietlow, Matthew Hill and Terry Maness, Short-Term Financial Management, 6th ed. (Cognella, 2022).
  • Fama and French (1998), “Taxes, Financing Decisions, and Firm Value,” Journal of Finance 53, 819–843.
  • Fama and French (2002), “Testing Tradeoff and Pecking Order Predictions about Dividends and Debt,” Review of Financial Studies 15, 1–33.
  • Fama and French (2005), “Financing Decisions: Who Issues Stock?” Journal of Financial Economics 76, 549–582.
  • Lim (2008), “The Five C’s in the Determination of the Terms of Credit.”
  • Lim, Elahee and Rashid (2005), “A Simple Model Integrating Capital Budgeting with Trade Credit,” Corporate Finance Review 9(5), 5–14.
  • Lim and Rashid (2002), “An Operational Theory Integrating Cash Discount and Product Pricing Policies.”
  • Lim and Rashid (2008), “Variations on the Operational Theory Integrating Cash Discount and Product Pricing Policies.”
  • Lim and Rashid (2008), “Monetary Policy and Menu Costs on Credit Policy and Product Pricing.”
  • Lim, Rashid and Mitra (2006), “Changes in Credit Terms and Clientele Effects on the Cash Discount Rate in Credit Policy.”
  • Lim, Rashid and Sarker (2010), “The Opportunity Cost of Entrepreneurial Labor and Dominant Financial Contracts.”
  • Rashid and Mitra (1999), “Price Elasticity of Demand and an Optimal Cash Discount Rate in Credit Policy,” Financial Review, 113–120.
  • Course-site revision of the textbook’s inventory-management chapter by William Lim.
Sources