This course is an introduction to corporate financial management. The course builds on BFIN 2409 & 2410 to provide students with the conceptual framework and analytical tools necessary to appreciate, understand, and analyze the problems facing corporate financial managers. The course consists of four main parts. The first part develops the tools necessary to conduct the analysis of corporate finance problems. These tools include the analysis of data reported on financial statements, building pro-forma financial statements, the basics of put and call options, and an introduction to corporate valuation techniques.
The second part of the course examines how managers set the two primary corporate financial policies: capital structure and payout policy (e.g. dividends and share repurchases), and the process of restructuring in financial distress and bankruptcy.
The third part of the course analyzes the process of issuing securities in the capital markets, including the role of the investment banker. Finally, the fourth part explores several aspects of mergers and acquisitions, including
the motives for these transactions, the structure of the deal, and the role of private equity firms.
Prerequisites: Financial Management module BFIN 2409 and BFIN 2410 Financial Management 1 and 2, respectively.