This course provides an analysis of the effects of various corporate financial policy decisions on the value of the firm, including the effects of taxes, bankruptcy costs and agency costs on these decisions.
During the course, we will focus on the investment decision (What is the value of a project for the firm?), the design of capital structure (What is the optimal trade-off between equity and debt?), and the relation between investment and financing decisions (How does capital structure affect firm value and project valuation ?).
Other topics will include the market efficiency and the impact of pay-out policy on firm value concepts and techniques in a rigorous way to address real world situations.