Finance Theory II

MIT 15.402 · Graduate Level

Extends Finance Theory I into capital structure, payout policy, options pricing, market microstructure, and agency theory, the advanced toolkit of corporate financial decision-making.

4 Modules

Self-Paced

Certificate

Graduate Level

What You'll Learn

Capital structure theory: Modigliani-Miller propositions
The trade-off theory: taxes, distress costs, and optimal leverage
Pecking order theory and asymmetric information in financing
Dividend policy: irrelevance, signaling, and share repurchases
Agency theory: principal-agent problems and corporate governance
Options pricing: Black-Scholes model and the Greeks
Real options in capital budgeting: deferral, expansion, and abandonment
Market microstructure: bid-ask spreads, price discovery, and liquidity
Mergers and acquisitions: deal structures, premiums, and value creation
Corporate governance: board structure, executive compensation, and activism

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Academic Attribution

Adapted from MIT OCW 15.402 Finance Theory II (Spring 2003). MIT Sloan School of Management.

CC BY-NC-SA 4.0

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