MSF6222: Finance II: Cash Flows, Managerial Decisions, and Project Valuation

This course is the second course in a three-course sequence to introduce the ideas of corporate finance. Section I will introduce capital budgeting. Students will use the cost of capital learned at the end of the first course in conjunction with an introduction to the calculation of cash flows and the use of decision rules for project selection. Section II will move into stock valuation and company valuation based upon the dividend discount model and enterprise model of valuation; students will also be exposed to other valuation methods. Section III will introduce the effect of capital structure on company valuation, starting with perfect markets and introducing the opposing effects of taxation and financial distress on valuation. Students will complete a case to demonstrate understanding of the core concepts from the first three sections; the case is a continuing case with each week building on the prior week's work. Section IV will provide an introduction to financial options and option valuation.

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