Learn how firms raise funds to finance their business through examining the corporate financial policy.
About the course
This finance course focuses on how a firm should raise funds to finance its projects. Learners will be exposed to a number of important theoretical frameworks to analyse how financial policies can create value for a firm in a world with “frictions” such as bankruptcy costs, taxation policy, information problems, and conflict of interests between different stakeholders. Specifically, the course covers topics such as debt and equity management, their relative attractiveness under different tax rules, and how these instruments can be used to alleviate the effects of informational and agency frictions. The course relates all concepts to real world examples such as capital structure choices, bankruptcy decisions, and leveraged buyouts. Learners are presented with a number of opportunities to think critically about real-world financial decisions in the context of the framework they are exposed to.
This course is a natural follow-up to “Financial Markets and Institutions” and is the last course of four in the Corporate Financial Analysis X-Series. Learn how firms raise funds to finance their business.
What you will learn
By the end of this course, you will be able:
- To evaluate a firm’s financial decisions in a coherent framework of value-creation;
- To understand how firms should raise money to fund their projects;
- To understand what a firm’s financial policy signals about its core business;
- To critically evaluate the trade offs present in various financing options available to a firm.
This course is targeted to managers working in corporations or institutions and individuals planning to pursue a graduate degree in business (MBA).
About the instructor
Amiyatosh Purnanandam is a Professor of Finance at the Ross School of Business (RSB), University of Michigan. Amiyatosh has a PhD from Cornell University, an MBA from the Indian Institute of Management, and a B. Tech. (Electrical Engineering) from the Indian Institute of Technology. Amiyatosh has published extensively on topics related to corporate finance, banking, subprime mortgage crisis, and credit risk in top journals in Finance and Economics. His research provides direct policy implications for banking regulations and financial sector reforms around the world. He currently serves on the Editorial Board of several finance journals.
Amiyatosh has taught extensively a broad range of courses in finance to undergraduates, MBAs, PhDs, and Executives. He has received several teaching awards and award nominations over the years, and he currently teaches some of the most popular finance electives at Ross. Amiyatosh has extensive industry experience in the banking sector through his consulting engagements, and a four-year work stint with a leading bank in India. He loves to play chess and enjoys reading history books.
Duration: Self-paced; Expected time for completion: 30-40 hours
Instructor: Amiyatosh Purnanandam
Institution: University of Michigan