This course:

• Presents and analyzes the key business decisions such as investment, financing and payout in an environment of risk and asymmetric information
• Describes the main conflicts of interest between the shareholders, lenders and managers of the company as well as their consequences in relation to the main objective of the managers which is to maximize the value of the company
• analyzes the effect of leverage on the value of the company
• analyzes the effects of payout policy on the value of the company
• analyzes company’s decision to go public (IPO)

With the successful completion of the course, students will be sufficiently capable to:

• understand the process of making financial decisions in modern businesses
• assess the value of company’s investments as well as the entire company’s value
• understand the impact on stock market share prices of corporate announcements regarding IPO, profits, capital structure, dividends, etc.