FIN 3480: Corporate Finance Theory and Practice provides students with a deeper understanding of finance theory and techniques and their applications to corporate financial policy. The course covers various topics, including cost of capital, capital budgeting, capital structure, dividend policy, leasing, real options, mergers and acquisitions, and other topics.

Main topics to be covered:

• Capital Budgeting: This topic examines the theory and techniques used to evaluate and select long-term investments that generate cash flows over time. The focus is on determining the relevant cost of capital, capital structure, and various methods for evaluating projects, such as net present value (NPV) and internal rate of return (IRR).
• Valuation with Leverage: Concentrating on the impact of leverage, or the use of borrowed funds, this topic explores how it affects the valuation of a company and its projects. The emphasis is on understanding the influence of debt on a firm's value and risk, as well as adjusting valuation methods to account for leverage.
• Capital Structure: Investigating the mix of debt and equity financing utilized by a company to fund its operations and growth, this topic delves into the trade-offs between debt and equity financing, the impact of capital structure on a firm's value and risk, and the factors that influence a company's choice of capital structure.
• Payout Policy: Examining the factors that influence a company's decision to pay dividends to its shareholders, this topic covers various dividend policies, such as constant payout ratio, constant dividend per share, and residual dividend policy, as well as the factors that affect a firm's choice of payout policy.
• Capital Budgeting with Leverage: Focusing on the process of evaluating and selecting long-term investments that generate cash flows over time, this topic considers the impact of leverage on valuation. The aim is to learn how to adjust capital budgeting techniques to account for the effects of debt on a project's value and risk.
• Real Options: Introducing the concept of real options, this topic covers the opportunities to make decisions related to investments, operations, or divestments in response to changing market conditions. The goal is to learn how to value real options and incorporate them into capital budgeting decisions.
• Mergers and Acquisitions: Centering on the process of combining or acquiring companies to achieve strategic objectives, this topic discusses the various types of mergers and acquisitions, the motives behind them, the factors that determine their success or failure, and the role of financial managers in the process.

ACC 1100  

ACC 2010  

ACC 2020