Corporate Finance covers how companies make financial decisions and manage money. You'll learn about capital budgeting, risk assessment, and valuation techniques. The course dives into financial statement analysis, capital structure, dividend policy, and mergers and acquisitions. It's all about understanding how firms raise capital and make investment choices to maximize shareholder value.

Is Corporate Finance hard?

Corporate Finance has a reputation for being challenging, but it's not impossible. The math isn't too crazy, but you'll need to wrap your head around some complex concepts. The trickiest part is applying financial theories to real-world scenarios. It can be tough at first, but once things click, it gets easier. Just stay on top of the material and practice those problem sets.

Tips for taking Corporate Finance in college

Use Fiveable Study Guides to help you cram 🌶️
Master the time value of money calculations early on
Practice, practice, practice with problem sets
Stay up-to-date with financial news and real-world examples
Form study groups to discuss complex concepts
Use Excel for financial modeling and calculations
Watch "The Big Short" for a fun look at financial markets
Read "Barbarians at the Gate" for M&A insights

Common pre-requisites for Corporate Finance

Principles of Finance: Introduces basic financial concepts, time value of money, and risk-return tradeoffs. It's the foundation for more advanced finance courses.
Financial Accounting: Covers the basics of financial statements and accounting principles. You'll learn how to read and interpret financial reports, which is crucial for corporate finance analysis.
Microeconomics: Explores how individuals and firms make decisions in markets. It provides a framework for understanding pricing, supply and demand, and market structures.

Classes similar to Corporate Finance

Investment Analysis: Focuses on evaluating securities and building investment portfolios. You'll learn about stock valuation, bond pricing, and portfolio theory.
Financial Markets and Institutions: Examines the structure and functions of financial markets. It covers banks, insurance companies, and other financial intermediaries.
Risk Management: Explores how companies identify, measure, and manage various types of financial risks. You'll learn about derivatives, hedging strategies, and financial engineering.
Mergers and Acquisitions: Dives deep into corporate restructuring and M&A deals. It covers valuation methods, deal structures, and post-merger integration strategies.

Finance: Focuses on financial management, investments, and financial markets. Students learn to analyze financial data, make investment decisions, and understand complex financial instruments.
Economics: Studies how societies allocate resources and make economic decisions. It provides a broader context for understanding financial systems and policy implications.
Accounting: Concentrates on recording, classifying, and summarizing financial transactions. Students learn to prepare and analyze financial statements, which is crucial for corporate financial decision-making.
Business Administration: Offers a broad overview of business operations, including finance, marketing, and management. It provides a well-rounded understanding of how businesses function across different departments.

What can you do with a degree in Corporate Finance?

Financial Analyst: Evaluates investment opportunities and provides recommendations to companies or individuals. They analyze financial data, create financial models, and help make informed investment decisions.
Investment Banker: Assists companies in raising capital through issuing stocks or bonds. They also provide advice on mergers and acquisitions, often working long hours on high-stakes deals.
Corporate Treasurer: Manages a company's financial assets and liabilities. They oversee cash management, develop financial strategies, and work to optimize the company's capital structure.
Private Equity Associate: Identifies and evaluates potential investment opportunities in private companies. They conduct due diligence, financial modeling, and help manage portfolio companies to generate returns.