Course in Financial Theory and Corporate Policy

Here goes the call to all the number crunchers, all those wall street wannabes. When you talk finance, to put it simply, IIM Calcutta just cannot be excelled. The different courses take you through the ins and outs of audits and accounts. We make you value your assets, help you minimize the costs and plan the fund flow. At the end of the journey a company balance sheet would be worth a thousand words. An enabled corporate citizen you shall evaluate stocks, play around with the ratios and thus select your own cocktail of equity and debt instruments. As an empowered manager you shall acquire the power to turn-around any company.

Term IV

Objective:
This course is designed to provide the student with a thorough knowledge of financial theories and corporate policies through the study of the interaction between firms, individual and the macroeconomy. This involves utility theory, state preference theory, and equilibrium asset pricing models, portfolio theory and efficient capital markets.

Course outline:
(1) Capital Markets, Consumption and Investment
(2) Advanced Capital Budgeting Topics
(3) The Theory of Choice : Utility Theory under Uncertainty
(4) State Preference Theory
(5) Objects of Choice : Mean-Variance Uncertainty
(6) Market Equilibrium : CAPM and APT
(7) Efficient Capital Markets : Theory
(8) Capital Budgeting under Uncertainty : The Multi period Case
(9) Capital Structure and Cost of Capital : Theory
(10) Mergers, Restructuring, Corporate Control : Theory

Evaluation :
(a) Quiz - 30%
(b) Paper Presentation - 10%
(c) End Term Examination - 60%

Text Book :Copeland, Thomas E. and J. Fred Weston - Financial Theory and Corporate Policy.