The purpose of this course is to understand the decisions that companies face when they need to invest in projects and raise money for those investments. We will consider the viewpoints of both the financial manager of the company as well as the investors looking to provide funds to the company. In order to examine this, we will build upon the toolkit introduced in prior finance classes, as well as develop new quantitative and qualitative tools.
The main topics of the class include:
- Valuing stocks and bonds
- Company valuation
- Cost of capital
- Capital budgeting
- Corporate governance
- Capital structure
- Corporate payout policy
- Mergers and acquisitions
- Options-based valuation techniques
- Private company financing (time-permitting), including:
- Venture capital (VC)
- Private equity (PE)
- Initial public offerings (IPOs)
This course is essential for anyone who is planning to pursue a career in finance, whether at a company or a financial institution. However, it is also recommended for anyone who wants a broader understanding of how companies choose investment projects and raise money.
