This course (formerly designated FIN 590) builds on work done in FIN 390 Principles of Finance to develop understanding of corporate financial decision making. Topics include cost of capital, capital structure policy, dividend policy, options, risk management, mergers and acquisitions, and leasing.
- Demonstrate a basic knowledge of issues and considerations involved in financial decisions such as corporate mergers and acquisitions and lease-versus-buy.
- Know the basic types of derivative contracts, their payoff structures and how they can be used to manage risk.
- Recognize factors to be taken into account in determining a corporation's dividend policy.
- Understand the basic elements of the foreign exchange market and alternative approaches to evaluating a corporate investment decision in an international context.
- Analyze the capital structure decision and evaluate the effect of financial leverage on a corporation.