FIN-5012 - Corporate Finance

Semester Credits: 3 Weeks: 8

This course examines the most important components of corporate finance. The course starts with an examination of the financial statements and the related financial ratios. The financial statements include the balance sheet and the income statement while the financial ratios make use of financial statement metrics to assess such issues as profitability, short term solvency, management of current accounts and debt structure choices. The course then studies some fundamental concepts on using present value and future value to solve business and personal financial problems. The differences between debt and equity securities are examined including the important role of interest rates in valuing debt securities, i.e. government and corporate bond values. This course will examine the benefits and costs of employing debt verse equity with the objective to maximize the value of the firm.