COMM 370 - Corporate Finance
The purpose of this course is to provide working knowledge of key corporate finance decisions that are important in the life of a corporation and, more generally, to help students acquire an understanding of broad economic issues that are of wide applicability in many areas of corporate finance. The course balances rigorous theoretical content and practical applications. You will gain experience in applying empirical and theoretical tools through the class discussion of two cases, as well as through your work on ungraded practice problem sets. Topics covered in the course include financial analysis and planning, capital structure policy, capital budgeting, the treatment of debt financing in capital budgeting, dividend policy, how corporations raise capital, and mergers and acquisitions.
While the main goal of the course is to familiarize students with the fundamental concepts in corporate finance, we will also emphasize these concepts’ practical applications. This will be done through case studies, problem sets, and real-world examples. At the end of the course, students will be able to:
- implement financial analysis and planning.
- estimate a project’s cash flows.
- estimate a project’s cost of capital.
- evaluate capital structure policy.
- determine how debt financing affects capital budgeting.
- evaluate payout policy.
- describe how a company can raise capital.
- identify key issues in mergers and acquisitions.
Prerequisite: COMM 298.