What Concepts are Taught in a Corporate Finance Course?

As part of most finance-related degree programs, a corporate finance course introduces students to a number of important concepts. If you're interested in enrolling in such a course and are wondering what might be covered, read on.

What Will I Learn in a Corporate Finance Course?

A course in corporate finance introduces students to the many ways in which corporate management both evaluates investment opportunities and finances investments. It also teaches basic financial concepts and provides students with the tools necessary for evaluating the intrinsic value of a corporation, as well as assessing a corporation's effectiveness in maximizing its value. Students looking to specialize in corporate finance can do so by pursuing a degree at either the graduate or undergraduate level.

Important Facts About Corporate Finance Courses

Prerequisites	May require current enrollment in a degree or certificate program, completion of prerequisite coursework or permission from professor
Online Availability	Yes, but may require some time on campus
Program Fields of Study	Corporate Finance, Risk Management
Common Courses	Managerial economics, macroeconomic analysis, investment theory
Median Salary (2021)	$95,570 (for financial analysts)*
Job Outlook (2021-2031)	9% (for financial analysts)*

Source: *U.S. Bureau of Labor Statistics

Course Topics

Below are some of the core concepts that may be covered in a corporate finance course.

Econometrics

Most corporate finance programs feature lessons in econometrics, which is a segment of economics involving the use of mathematical methods (most commonly statistics) to detail economic systems. Students in this course will learn about empirical studies and how to study and understand them, with an emphasis on acquiring a comprehension of econometric principles and their applications.

Capital Markets & Investments

This course analyzes capital markets and the essential models used in security measures and portfolio management. Students will explore portfolio theory, security organization, pricing models, and statistical concepts. This course also introduces the importance of collaboration, as students will participate in group projects wherein they must satisfy the demands of a hypothetical investor.

Financial Strategy

This section of corporate finance examines the correlation between behavioral finance and financial strategies. This is one of the more advanced topics in corporate finance and provides a review of basic topics such as valuation and capital budgeting in addition to more advanced ideas such as corporate governance and mergers. Students will learn about two key perspectives: traditional finance (which relies on rational decisions from managers) and behavioral finance (in which managers are prone to making errors).