**3 (ECTS) - 24 Contact Hours**

This course consists of two parts and focuses on the, so-called, core issues in Corporate Finance. The first part analyses the capital budgeting and valuation tools, whereas the second part deals with optimal capital structure and payout policy. We will start by introducing the tools to discount and evaluate risky investment decisions. Once having learned those tools, we can apply them to choose between different risky investments, a process called capital budgeting. In a second step, we will learn how to use the discount model to evaluate stocks and bonds. This leads us to introduce the notion of equilibrium asset pricing. We will then move to the second part, which addresses one of the fundamental questions in Corporate Finance, namely how to choose the optimal capital structure (debt/equity) of the firm. We will

- Teacher: Nataļja Točelovska