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Corporate Finance

Lecturer: Dr. Jianyu YU

Office Hours: Make an appointment

Teaching assistants:

TD

Course Description

The purpose of this course is to gi!e stu"ents a thorough un"erstan"ing of #asic financia$ theory an" too$s

necessary for financia$ "ecision making. The course %i$$ #e an e&tension of Financia$ Management. 't %i$$$ook in more "etai$ at a range of topics in financing( inc$u"ing capita$ structure an" "i!i"en" po$icy(

raising e)uity an" '*Os. 't %i$$ in!estigate the issue of the management of short+term finance. Fina$$y( it

%i$$ co!er some issues of corporate go!ernance( inc$u"ing topics of merger( ac)uisitions an" corporate

contro$.

After the course:

,tu"ents %i$$ gain a "eep un"erstan"ing on ho% firm managers make financia$ "ecisions( %hat issues they

ha!e to face or %hat are the right )uestions they ha!e to ask. 'n summary( it he$ps stu"ents to un"erstan"

%hat financia$ managers "o an" %hy.

TEXTBOOK(S):

-oss( esterfie$"( an" Jaffe( Corporate Finance( the /th0"ition( 'nternationa$ 0"ition( Mc1ra%+Hi$$.

-ichar" rea$ey( ,te%art Myers( an" Frank$in 2$$en( *rincip$es of Corporate Finance( Mc1ra% Hi$$ 3th

e"ition.

Recommend reading:

Lecture notes of 2s%ath Damo"aran( http:44%%%.stern.nyu.e"u45a"amo"ar4

Real world reading:

a$$ ,treet Journa$( Financia$ Times( Fortune

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Structure of the course:

The course %i$$ first start #y intro"ucing the capita$ structure( main$y the composition of "e#t an" e)uity

an" ho% they affect the !a$ue of a firm. Then %e sha$$ $earn the "ifferent $ong+term measures that the firmgets the financia$ sources( specifica$$y( the "e#t financing an" e)uity financing. These financia$ sources

%i$$ #e repai" to the shareho$"ers un"er certain po$icies. Hence( %e %i$$ #rief$y ana$y6e the firm7s payout

po$icies an" see ho% "ifferent po$icies %i$$ affect the firm7s !a$ue an" in!estor7s incenti!es. 8e&t( %e

$ook at the short+term finance to see ho% a firm manages its net %orking capita$ that may a$so affect the

firm7s !a$ue. 2fter $earning the firm7s financing strategies( %e can e&ercise some financia$ ana$ysis on the

e&isting companies. 2 series of presentations %i$$ #e organi6e" an" e!a$uate". Fina$$y( %e sha$$ intro"uce

some interesting an" specia$ topics such as the merger an" ac)uisition.

*art ook

chapters

Topic 9s eek no.

'. O!er!ie% 'ntro"uction ;

''. Capita$

structure

-J: Ch ;3 Financia$ ana$ysis ;>

9home%ork

A''. ,pecia$

topic

-J. Ch >/

M2.Ch ?;

Merger an" ac)uisition ;?

*roect *resentation ;@

re!ie% ;B

Grades:

Home%ork ?ECase ,tu"y *resentation ?E

Final exam 40%