Corporate Finance

 In this subject students are expected to have an analytical and problem solving skills in finance from the point of view of management and investors. In general, there are three groups of financial decision and a company’s policy: investment, financing, working capital decisions, and dividend policy. Investment decisions involve allocation of scarce resources across competing uses. Financing decisions involve raising funds to finance the investment projects. Working capital decisions manage the short-term operating cash flows involving a strategy to match between short-term investment and the needs of short-term financing. Meanwhile, dividend policies involve reinvesting cash back to the business or returning cash to shareholders. Corporate Financial Management deals with the maintenance and creation of economic value or wealth. It focuses on decision making with a special attention on creating wealth. In this course, some basic finance tools are important. The tools are: financial statement analysis, mathematics of finance (present value, future value, annuity, perpetuity, etc.), risk-return models, and valuation models. In addition, potential conflict of interests among the actors (such as managers vs. shareholders and shareholders vs bondholders) is also recognized.

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