UNIVERSITY OF ILLINOIS AT CHICAGO
Managerial Finance
FIN 320 – Spring 2018
Instructor: Tatiana Zabotina
E-mail: tzabo1@uic.edu
Office: Department of Finance, Room 2331, University Hall, 601 South Morgan Street
Office Hours: T, TH 11:00 am -12:00 pm or by appointment
Lecture: T, TH 12:30 pm -1:45 pm, Lecture Center, Building A, room A006
Course Description
This course introduces students to the financial decisions made by a financial manager on behalf of the
firm. These financial decisions include what investments to make (Part 1: Capital Budgeting), the
distribution of dividends (Part 2: Dividend Policy), and the optimal mix of debt and equity in a firm under
various conditions (Part 3: Capital Structure). The financial decisions in the second and third parts of this
course are first explored in a frictionless environment – in such an environment, dividend policy and the
debt-equity mix in a firm’s capital structure do not affect the value of the firm. However, when market
frictions such as taxes, bankruptcy costs, information asymmetries, and conflicts of interest are
introduced, these financial decisions can and often do impact firm value. We will cover these market
frictions in detail. Finally, time permitting, applied topics such as risk management, hybrid securities,
mergers and acquisitions, and the financial crisis of 2008 will be covered in the fourth part of this course
