Presents and analyzes the key business decisions such as investment, financing and payout in an environment of risk and asymmetric information
Describes the main conflicts of interest between the shareholders, lenders and managers of the company as well as their consequences in relation to the main objective of the managers which is to maximize the value of the company
analyzes the effect of leverage on the value of the company
analyzes the effects of payout policy on the value of the company
analyzes company’s decision to go public (IPO)
With the successful completion of the course, students will be sufficiently capable to:
understand the process of making financial decisions in modern businesses
assess the value of company’s investments as well as the entire company’s value
understand the impact on stock market share prices of corporate announcements regarding IPO, profits, capital structure, dividends, etc.
General Competences
Search, analyze and synthesize data and information relevant to business decisions
Investments and companies evaluation
Recognizing the impact of business developments on the stock market
Synthesis of the interactions between business decisions, money and capital markets and the public
3. Syllabus
Risk and Return
Risk, Cost of Capital, and Valuation
Efficient Capital Markets and Asymmetric Information
Long-Term Financing
Capital Structure
Valuation and Capital Budgeting for the Levered Firm
Payout Policy
4. Teaching and Learning Methods - Evaluation
Delivery
Face-to-face in a classroom
Use of Information and Communications Technology
Using of PowerPoint slides
Teaching Methods
Activity
Semester Workload
Lectures
52
Independent Study
135,5
Course Total
187,5
Student Performance Evaluation
Written final exam (100%) including:
Multiple Choice Questions with problem solving and critical questions
5. Attached Bibliography
Suggested Bibliography
Ross, S., Westerfield, R., Jaffe, J., Corporate Finance, Broken Hill 2016 [RWJ]