COMM 3720

Intermediate Corporate Finance

Official UVA Student Evaluations Course Description

Pre-Requisite(s): COMM 3010, 3020, and 3030

A rigorous introduction to the full field of finance. Students should gain an appreciation of the role of financial markets and institutions in our economy as well as an introduction to the responsibilities, concerns, and methods of analysis employed by corporate financial managers. We focus on the two fundamental aspects of financial decision-making: time value and risk (modern portfolio theory, the capital asset pricing model, and alternatives). The concepts of time value and risk are used to value the two basic financial assets, bonds and stocks, as well as real assets, investment projects, and companies. In addition, the course introduces derivative securities (options, futures) and discusses their application in a wide variety of settings (real options, contingent claims valuation of equity). The course also covers the theory and practice of capital structure decisions (Modigliani and Miller, taxes, bankruptcy costs, asymmetric information, agency) and dividend decisions. The course will include a thorough discussion of market efficiency and an introduction to the field of behavioral finance. A unifying theme of the course is how no-arbitrage conditions and the law of one price can be used to value most financial assets. The emphasis in this course (both in and out of class) will be on problem solving.


  • Robert Parham

     Rating

    3.88

     Difficulty

    4.52

     GPA

    3.39

     Sections

    Last Taught

    Spring 2022

  • Carola Schenone

     Rating

    3.21

     Difficulty

    3.37

     GPA

    3.23

     Sections

    1

    Last Taught

    Fall 2022

  • Gayle Erwin

     Rating

    3.67

     Difficulty

    2.50

     GPA

    3.39

     Sections

    Last Taught

    Fall 2021

  • David Smith

     Rating

    4.33

     Difficulty

    3.00

     GPA

     Sections

    Last Taught

    Spring 2022

  • Zhaohui Chen

     Rating

    3.25

     Difficulty

    3.00

     GPA

    3.43

     Sections

    Last Taught

    Spring 2022