Corporate Finance
Professor Paola Sapienza
Do you want to learn more about some topics we cover in Fin 2?




Fin II introduces a lot of different topics. Besides Financial Decisions that has a lot of applications based on the material I covered in Fin II, once you have taken Fin 2 you can learn more about the topics we covered in class by taking other- more advanced-- classes.

 

Here is a list:

-          Lecture 1 – Market efficiency. Investments (Fin 460) covers market anomalies, violations market efficiency and behavioral finance

-          Lecture 2 – CAPM, you can learn more about the CAPM and alternative risk models in Investment (Fin 460). In Lecture 2 we discussed the term structure of interest rates. The term structure of government bonds is analyzed in more details in Fixed Income (Fin 464). In Money Market and the Fed (Fin 451) you will study how interest rates are determined, the role of the Federal Reserve and the conduct of monetary policy. Also, the course provides an overview of the instruments of the money market and how are their relative yields determined.

-          Lecture 3 – Corporate valuation. More of what we did in this class is covered in Security Analysis (FINC 463).

-          Lecture 4 and 5. Options. In Derivative Markets I (FINC 465) you will study the use and pricing of forwards and futures, swaps and options. Derivative Markets II (FINC 467) covers advanced topics in derivatives and modern risk management practice. Fixed Income (FINC 464) cover pricing and hedging of forwards, futures and swaps, asset-backed securities and other fixed income derivatives.

-          Lecture 6. Real options. Advanced topics in real options are covered in Real Options (FINC-924-A).

-          Lectures 7, 8, 9, 10, 11, and 12. Dividends and capital structure decisions. Financial decisions (FINC 442) is a case based course that covers topics such as short- and long-term financing, capital structure and dividend decisions, cost of capital, capital budgeting, firm valuation, financial and operational restructuring, and mergers and acquisitions. Also, Corporate Restructuring (FINC 448) examines transactions that significantly affect corporations' assets, liabilities, and/or equity claims. Topics covered include bankruptcy, convertible securities, tracking stock, spin-offs, and mergers. Finally, Financial Strategy and Tax Planning (FINC-447) examines the role of taxes in a firm's financial strategy.

-          Lecture 13. Hedging. Derivative Markets II (FINC 467) covers advanced topics in derivatives and modern risk management practice. Fixed Income (Fin 464) cover pricing and hedging of forwards, futures and swaps, asset-backed securities and other fixed income derivatives. Hedging strategies are discussed in International Finance (FINC 470)

-          Lecture 14. Convertibles and Hybrid Securities. These instruments are studied in more details in Derivatives II (FINC 467).

 

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If you have questions about this web page, send them to Paola-Sapienza@northwestern.edu