Corporate finance is the subject which deals with both sides of the corporate balance sheet: which projects should a corporation take on and what is the best way to finance them? In corporate finance we study how corporation s take investment decisions, but especially how they should take them. What return should a corporation make on its investments? How do you value options in an investment project? How do you deal with risk in an investment project? How do you value a corporation? If a project is worthwhile, in an efficient capital market a corporation should always be able to find funding for it. Are capital markets efficient? How do you value bonds and stocks? Does it matter how much dividend a corporation pays out to its shareholder? Are hostile takeovers a good or a bad thing? In this course we will focus on the big questions in corporate finance.
By the end of this course, the student should be able to:
- use the basic techniques for investment evaluation
- link the major debates in corporate finance to real life cases
- have a real understanding of the major debates in corporate finance
Debt structure and its relevance