RSM333: Corporate Finance focuses on essential financial decisions aimed at maximizing a firm’s value. It covers investment decisions, such as launching new products or acquiring firms, and financing decisions, which determine how these projects are funded. Since investment and financing decisions are interdependent, the course emphasizes understanding their relationship. In addition, topics like financial planning, capital budgeting, cost of capital, and working capital management will be explored.

Students will develop the ability to evaluate whether a project should be undertaken and identify suitable financing strategies. They will learn to calculate cash flows, select appropriate discount rates, and perform scenario and sensitivity analyses. The course also introduces Modigliani-Miller theories on capital structure and dividends, providing tools to assess a firm’s debt-equity mix, dividend policies, and sustainable growth rate.

By the end of the course, students will be equipped to apply various valuation methods, including discounted cash flow analysis and trading multiples. They will also examine the benefits of mergers and acquisitions and estimate transaction prices. Additionally, the course covers the importance of working capital management, focusing on cash holdings, credit policies, and strategies for managing liquidity to support financial growth and stability.

Prerequisite: RSM219H1, RSM332H1. Exclusion: ACT349H1, ECO359H1.

COURSE CODE

COURSE NAME

ACT240

Mathematics of Investment & Credit

ECO101

Principles of Microeconomics

ECO102

Principles of Macroeconomics

ECO206

Microeconomic Theory

ECO220

Introduction to Data Analysis & Applied Econometrics

ECO227

Foundations of Econometrics

ECO372

Data Analysis & Applied Econometrics in Practice

ECO374

Forecasting and Time Series Econometrics

ECO375

Applied Econometrics I

EEB225

Biostatistics for Biological Sciences

MGM390

Business Law

PSY201

Statistics I

RSM219

Introduction to Financial Accounting

RSM220

Intermediate Financial Accounting I

RSM221

Intermediate Financial Accounting II

RSM222

Management Accounting I

RSM225

Legal Environment of Business I

RSM230

Financial Markets

RSM250

Principles of Marketing

RSM260

Organizational Behaviour

RSM332

Capital Market Theory

RSM333

Corporate Finance

RSM336

Investments

RSM433

Advanced Corporate Finance

RSM435

Futures and Options Markets

SOC202

Introduction to Quantitative Methods in Sociology

STA220

The Practice of Statistics I