FIN 821. Business Investment and Valuation. 3 Hours.
This course explores how businesses evaluate investment opportunities and deploy capital to enhance firm value. Principal objectives include identification of incremental cash flows and growth options generated by business investment, application of discounted cash flow techniques to evaluate investment opportunities and firms, understanding of alternative valuation techniques and their use in the analysis of real options, understanding interactions between a firm's financing structure and its investment policies, and identification of managerial incentives and how a firm's governance structure affects investment policy and firm valuation. Topics include incremental cash flow identification, discounted cash flow techniques, real options analysis, leverage, cost of capital, corporate governance. Prerequisite: ACCT 810 and FIN 810. This course is open only to students in the full-time MBA program. LEC.