Course overview
This course examines techniques and issues in corporate finance with a focus on corporate investment decisions. Topics include valuation of growth opportunities, techniques for evaluating capital investment proposals, application of option pricing models in a corporate setting, merger and acquisition strategies, corporate diversification and divestitures, incentive-aligning compensation including executive stock options, managerial optimism and corporate governance mechanisms.
Course learning outcomes
- Explain and interpret conceptual models and arguments in corporate finance
- Recognize the model appropriate for structuring a given financial problem
- Understanding the data requirements of a chosen model
- Understanding how outputs are sensitive to changed data or assumptions
- Interpreting the results consistent with the model structure