Financial Theory and Corporate Policy

Course content

This course is designed to provide the students a thorough knowledge of financial theory and corporate policy through the study of the interaction between individuals, corporations and the macro-economy. The first part of the course covers investment decision under certainty, the term structure of interest rates, the investor choice under uncertainty, portfolio theory and equilibrium asset pricing models. The second part focuses on the applications of financial theory to corporate policy issues such as the cost of capital, capital structure, dividend policy and option pricing.