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Finance II
(FINC-441) [Link to course website]
Professor Matsa
This
course is the sequel to Finance I
(FINC-430). The primary objective
is to examine the financial decisions of firms with regard to their
capital budgeting decisions (which investments to make), dividend
decisions and capital structure decisions (how to raise capital). We first examine these decisions in an
idealized frictionless world in which the firm cannot change its value by
altering its dividend or capital structure policy. We then explore the effect of frictions
(e.g. taxes, bankruptcy costs, inefficient or uncompetitive financial
markets, or self-interested managers) on the firm's financial decisions
and how these decisions can affect a firm's value.
Prerequisites: FINC-430
Corequisites: DECS-434 or equivalent
Recommended: ACCT-430 and
MECN-430
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