Financial strategies encompass those financial decisions that affect the long-run value of the firm, such as capital investment and its financing, capital structure, and dividend policy. The focus of the course is to provide a bridge to understanding the underlying principles behind why these decisions are made and to offer explanations for observed behaviours on the part of financial decision makers. A comprehensive framework of conceptual knowledge that builds on the principle of value maximization will be developed. The conceptual framework used by an entrepreneur in his/her simultaneous consumption and investment decision is shown to be the same as that use by large sophisticated corporations in their capital budgeting decisions using mean-variance portfolio theory and option pricing theory. The financing of corporate assets (i.e., capital structure decision) and payout policy (i. e., dividend decision) are an integral part of this conceptual framework. PREREQUISITE COMM-121* or 221. This course is restricted to students enrolled in the 3rd or 4th year of their program.
