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Theory and Policy of Modern Finance

Course Number:



Joel Stern,





Course Description

The purpose of this course is to acquire a working knowledge of how the theory of modern finance is applied in practice as a strategic policy in maximizing share value. There are five distinct subject headings

1 structure and functioning of capital markets
2 valuation  risk
3 capital structure
4 recapitalization restructuring and incentive signaling and
5 performance measurement.

There are two specific requirements for the course in addition to expected attendance. The first is a paper that will be submitted two weeks prior to the final examination which will be a valuation of a publicly-traded firm. Your task is to compare the value calculated with the actual value and if there is a significant difference you are to explain the principal causes. The second requirement is a final examination. Each will account for 50 percent of the final grade. However the instructor has the option of 10 percentage points based on class participation. 


Lecture: 100min/wk and Recitation: 50min/wk