BUSN 645 Applied Corporate Finance

This graduate-level course provides an advanced exploration of corporate finance principles and practices within the context of real-world business scenarios. Students will analyze and apply financial theories, tools, and techniques to address complex financial challenges faced by corporations. Through case studies, simulations, and practical exercises, learners will develop the skills and knowledge necessary to make informed financial decisions, optimize capital structure, and maximize shareholder value in dynamic business environments.

Credits

3

Offered

Spring

Outcomes

1. Understanding Financial Statements: Students will learn how to analyze and interpret financial statements, including the balance sheet, income statement, and cash flow statement. They will develop the ability to evaluate a company's financial health and performance.
2. Capital Budgeting: Students will learn how to assess investment opportunities and make informed decisions regarding the allocation of financial resources. They will understand concepts such as net present value (NPV), internal rate of return (IRR), and payback period to evaluate potential projects.
3. Cost of Capital: Students will gain knowledge about the cost of capital and its importance in determining the appropriate discount rate for investment appraisal. They will learn various methods to calculate the cost of equity, debt, and weighted average cost of capital (WACC).
4. Capital Structure: Students will explore the theory and practice of capital structure decisions. They will understand the trade-offs between debt and equity financing and the impact of capital structure on a firm's value and risk. Topics may include leverage, Modigliani-Miller theorem, and optimal capital structure.
5. Dividend Policy: Students will examine different dividend policies and their effects on a company's value and shareholder wealth. They will learn about dividend theories, payout ratios, and factors influencing dividend decisions.
6. Valuation Techniques: Students will learn various valuation methods used in corporate finance, such as discounted cash flow (DCF) analysis, relative valuation (comparables), and option pricing models. They will understand how to estimate the intrinsic value of a company or its securities.
7. Mergers and Acquisitions: Students will explore the fundamentals of mergers, acquisitions, and corporate restructuring. They will understand the motives behind these transactions, valuation techniques specific to mergers and acquisitions, and the financial implications for both acquiring and target companies.
8. Risk Management: Students will develop an understanding of risk management techniques employed by corporations, including financial derivatives and hedging strategies. They will learn how to analyze and mitigate various types of risks, such as interest rate risk, foreign exchange risk, and commodity price risk.
9. Corporate Governance: Students will gain knowledge about the principles and practices of corporate governance. They will understand the roles and responsibilities of boards of directors, executive compensation, and the relationship between corporate governance and firm performance.
10. Ethical Considerations: Students will explore ethical issues and dilemmas faced by corporations in financial decision-making. They will develop an awareness of ethical standards and responsibilities in the corporate finance context.