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Berkeley Global
In this course, you'll review security valuation and the cost of capital components for the firm. This leads to an in-depth analysis of the cost of capital and the firm's decision-making process regarding the capital structure (the choice of debt versus equity financing). This analysis necessarily involves consideration of risk, as the firm faces a trade-off between lower cost of capital but greater financial risk. After developing the standard theory of capital structure, you then focus on a number of applied issues related to raising long-term capital.
Course content subject to change.
Recommendations
The exams rely very heavily on the topics and analysis covered in lectures, and you are not responsible for material in the readings that is not covered in class. The final grades are, to some degree, based upon how you perform relative to the class average. Note that this means the problem sets and class participation have only a marginal (if any) impact on the final grade, as there generally is little variation among students in these areas. Therefore, the two exams ultimately determine the final course grade. You are expected to attend all class meetings, and more than one unexcused absence negatively impacts the course grade.
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