Navin Chopra is Clinical Professor of Finance. Prior to that he was on the faculty at Columbia University for 4 years and at New York University for over 12 years where he taught finance courses at NYU Stern School of Business and NYU Law School. He received his PhD in finance at the University of Michigan, Ann Arbor. He also obtained his MBA degree, specializing in finance, and his bachelor's degree in mechanical engineering.
His area of expertise is in corporate finance, fixed-income securities, derivatives, valuation, equity instruments, venture capital markets, buyouts and other leveraged transactions, investments, and corporate finance. He has also taught at numerous financial institutions in the New York area. He has published articles in the topmost scholarly journals in finance and has received significant recognition in the academic profession. One of his papers received the 'All-Star' award as the most-cited paper published in the Journal of Financial Economics during 1993-2002. He also acts as an ad hoc referee for a number of finance journals.
**This version of Finance II is designed for students who took Finance I during or after Fall 2014**
Finance II: Corporate Finance covers the financial knowledge you need to run a firm, whether the firm is a multi-billion international conglomerate or a three-person start up. You will learn how to answer the three fundamental question of corporate finance: (1) Capital structure or the funding decision: which source(s) of capital should you use to fund the firm's project? (2) Capital budgeting or the investment decision: which projects should you invest in? (3) Dividend decision: how should you deploy the capital that the project returns?
We will cover the three fundamental methods for valuing projects and firms: discounted cash flow (or net present value), real options, and multiples analysis. The class begins with a theoretical framework. The world of finance is very complex. Without a logical structure that you can use to frame and answer questions, you will rapidly become lost and will be unable to defend your position. The theoretical framework is valuable, however, only if you can use it to examine real world decisions. Thus the majority of class time will be devoted to applying the logical framework.
This course is important for anyone who plans to run a firm or a division, who hopes to be involved in the investment or funding decisions of the firm, who plans to work for a service provider who will assist the firm in analyzing these decisions (e.g., banking and consulting), or who plans to invest in firms or advise clients who will invest in firms. Even if you initially specialize in a different functional area, you want to understand how the finance function works. The most brilliant idea isn't useful if you cannot get it funded.
Recommended Prerequisites: ACCT-430 and MECN-430
Finance 1 answers managers’ and investors’ most fundamental finance question: how should a project or an asset be valued? Managers must determine the value of building a factory, entering a new market, or purchasing an entire firm when deciding in which projects to invest. Similarly, individuals must assess the value of financial securities to decide how to invest their wealth. Using a combination of lectures and business cases, Finance 1 teaches the discounted cash flow and multiples methods to value projects or assets. These valuation tools lay the foundation for all work in capital markets and corporate finance.
Prerequisite: Business Analytics I (DECS-430-5)
Corequisite/Prerequisite: Accounting for Decision Making (ACCT-430) and Business Analytics II (DECS 431-0)