MGMT 5260

MGMT 5260

Course information provided by the Courses of Study 2021-2022.

This class is designed to provide you with the financial tools to (a) value potential corporate investment opportunities, and (b) understand which securities should be used to finance corporate investment ("capital structure decision"). These basic skills are essential for students interested in commercial banking, investment banking, mergers and acquisitions, private equity, venture capital, corporate financial management, consulting and asset management. The class is divided into two sections, which correspond to the two main goals of the course. The first part of the course covers methods used to value investment projects. Particular attention will be given to calculating free cash flows, discount rates, valuing incremental investments, the effects of financing on value, the methods of weighted-average cost of capital (WACC) and adjusted present value (APV). The second part of the course will focus on understanding which securities should be used to finance investment. This section starts with an analysis of tax and bankruptcy implications of debt financing, and moves on to consider information and agency problems. We will discuss information problems associated with equity financing, the incentive effects of debt financing, and the conflicts between equity and debt stakeholders.

When Offered Spring.

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Syllabi: none
  •   Seven Week - Second. 

  • 1.5 Credits GradeNoAud

  • 12799 MGMT 5260   LEC 001

  • Instruction Mode: In Person
    Enrollment limited to: Johnson and Graduate students who have permission. There will be no enrollment from a wait list into a class if you have a time conflict or if it will create an overload. Students dropping this course after April 5, 2021 will be assessed a fee of $100. The deadline to drop the class without a “W” is April 26, 2021 @11:59pm but you will still be charged the $100 late fee.