This highly interactive course covers advanced theoretical and applied corporate finance, allowing you to understand how senior managers determine whether to pursue large capital investments and fund strategic projects.

Exploring advanced theories used to understand financial markets in the context of corporate borrowing and lending, you will discuss financing frictions that differentiate the functioning of perfect and imperfect capital markets. You will then build on these theories to understand security design and the process of security issuance in equity markets. By applying the course material you will evaluate corporate risk management and hedging, understand the role of corporate control, and the interaction of control rights and cash flow rights.

Using real-world case studies, including American Home Products, Midland Corporation, and Mercury Athletic, the second part of the course will focus on the applications of corporate finance tools. Each week, you will explore particular issues facing practitioners including capital budgeting, the design of optimal capital structures, the valuations of start-ups, mergers, and private equity buyouts. By the end of the course, you will be able to apply advanced theoretical models of corporate finance to perform corporate valuations, prepare capital budgets and determine optimal capital structures.