Capital Structure Course of MBA at University of British Columbia

Sauder School of Business > University of British Columbia

BAFI 502 Capital Structure

Prerequisite
BAFI 500 BAFI 511

This course focuses on the considerations that enter the capital structure and payout policy choices of a firm. A review of the basic principles of capital structure and payout policy is provided followed by a detailed discussion of specific considerations. The topics covered include the impact of taxes on the use of debt and on payout decisions (dividends versus share repurchases), the use of hybrid securities to address information asymmetry between managers and shareholders, the impact of capital structure on managerial incentives, the role of capital structure on industry competition, financial distress and restructuring. The course concludes with an overview of corporate governance mechanisms focusing on the role of boards and executive compensation. Business cases and real world applications are used extensively throughout the course. This course will be useful to students considering careers in corporate finance, investment banking, commercial banking and consulting.

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