BA 2550 - Corporate Finance

• Identify and calculate acceptance criteria and projected cash flows in a capital budgeting decision
• Describe the capital structure decision and calculate the cost of capital
• Describe and calculate the value of investments
• Calculate and analyze the relevant costs in strategic decisions
• Identify the financial concerns for a decentralized organization

• None

• Review of accounting and finance
• Investment decision rules
• Fundamentals of capital budgeting
• Valuing stocks
• Estimating cost of capital
• Capital budgeting and valuation with leverage
• Raising equity capital
• Debt financing
• Leasing

• Describe corporations and financial markets
• Review financial statements
• Review time value of money
• Review bonds
• Describe the price of risk
• Demonstrate NPV, IRR, and payback methods for valuing projects
• Describe project selection criteria
• Identify the effects of financial constraints
• Create earnings forecasts
• Examine the components of free cash flows
• Evaluate projects using sensitivity analysis and scenario analysis
• Describe the effects of MACRS depreciation
• Demonstrate the dividend discount model
• Describe valuations based on free cash flow models
• Identify comparable firms’ models
• Determine the components of cost of capital
• Identify the project cost of capital and risk adjustments
• Demonstrate how leverage effects capital budgeting
• Examine the effects of corporate tax on capital budgeting decisions
• Identify the effects of periodically adjusted leverage policies
• Examine equity financing for private companies
• Identify the key elements of an initial public offering (IPO)
• Describe seasoned equity offerings
• Describe types of debt
• Identify common bond covenants and repayment provisions
• Explain leasing concepts
• Identify reasons for leasing
• Describe the accounting, tax and legal consequences of leasing