Teaching Interest

Finance II (MBA Required Curriculum)

by Benjamin C. Esty

Description

This course builds on the foundation developed in Finance I, focusing on three sets of managerial decisions:

  • How to evaluate complex investments.
  • How to set and execute financial policies within a firm.
  • How to integrate the many financial decisions faced by firms.

The Finance II course is divided into four blocks of material:

  • Tools of financial analysis (credit market analysis, option pricing, valuation of interest tax shields, weighted average cost of capital)
  • Financial policy choices of firms (whether to finance with debt or equity, distributing cash to shareholders)
  • Financial market imperfections (costs of financial distress, transaction costs, information asymmetries, taxes, agency conflicts)
  • Deals and transactions (mergers and acquisitions, leveraged buyouts, hostile takeovers, initial public offerings)

Keywords: Finance;