EC 432. Economics of Corporate Finance

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This is a course designed to give the student the necessary knowledge and working ability to make financial decisions in the management of a business.

The tasks of the financial manager (or management team) are diverse and interrelated.

Included among these tasks are deciding what projects are profitable; what projects the firm will undertake; how to finance the projects; how much debt is optimal for the firm, how to manage the firm’s assets; interpreting the firm’s accounting statements and managing risk.

This course will use a coordinated set of practical applications and examples to explain and demonstrate the ‘modern finance’ techniques of carrying out these tasks.

In EC 432 the focus is on the financing of the firm and its projects: the different types and sources of financing, the costs and benefits and disadvantages of each and the analysis of the optimal capital structure (or financing mix).

Other major topics in EC 432 include financial statement analysis, international financial management and risk management.

Restriction(s): INF 301 or INF 302