Two - Year Master Degree in Economics

 This course provides an overview of the fundamental financial choices of firms from a theoretical and practical point of view. The course will review the main models in the theory of corporate finance and their real world implications. The emphasis on theory and analytical tools applied to real-world decision making will allow a deep understanding of firms’ capital structure, corporate governance, and topics in long-term finance and investment. 

 The goal of the course is to provide students with a framework to apply to decision making when facing a financial decisions in firms. The objective of the course is to enable students to (1) discuss and assess the options available to managers under specific scenarios, (2) explain how each scenario fits within current corporate finance theory, (3) identify and apply the specific tools and techniques that aid in decision making, and (4) provide recommendations based on the insights gained in the applications of these tools. 

Exams will be a mixture of multiple-choice questions, open-ended questions, and quantitative problems. For quantitative problems, you will need to show your work (the final answer is not enough). Exams are NOT open book/notes. The quantitative problems on exams will resemble those on the homework assignments.

Calculators and Other Equipment on Exams: You can use calculators – simple or financial – in class. If you are in doubt about your ‘device’, please come see me before the first exam. No other devices are going to be allowed during exams – no phones, laptops, tablets, etc.

Part I. Corporate financing

Claims, players and processes

Debt and equity financing: institutional features and stylized facts

The basic trade-off between risk and return

The corporate structure in the Modigliani-Miller framework

Agency problems in outside financing

 Part II. Corporate governance

Managerial incentives

The board of directors

Large shareholders and investors activism

Takeovers and LBOs

Debt as a governance mechanism

Part III. Topics in long-term finance

Sovereign wealth and investments

Inclusive corporate finance

Social impact finance and double bottom line