Covers the theory and practice of financial decisions and their interaction to determine the firm’s value. Capital investment decisions are examined with certainty and under risk. Financing decision is examined through capital structure theory, cost of capital. The dividends policy choices are explained with their implications. The management of working capital and short-term financing is explained. Valuation of securities integrates the impact different financial decisions. Other topics are also discussed such as real options analysis, leasing, mergers and acquisitions, agency theory and corporate governance.

Pre-requisites: FIN250