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Economics 361 Corporate Finance
This course applies economic theory to analyze financial decisions made by corporations. These decisions include what real assets to invest in and how to raise the funds required for these investments. The analysis concentrates on the roles of the timing of cash flows, the risk of cash flows, and the conflicts of interest between the various actors in the world of corporate finance. Special attention is paid to stocks, bonds, dividends, and options. Extensive use is made of financial data and spreadsheets. Offered in the spring semester.
Prerequisite: Economics 251, 291, and a course in Statistics (either Division III 252, Mathematics 107, 217, 227 or Psychology 201.)