Foundational concepts of modern financial management. Emphasizes the role of financial markets in decision-making. Applies models for risk and return to determine cost of capital needed to value long-term investments by the company. Analyzes theory and practice of how corporations choose the optimal mix of long-term financing and how this choice is influenced by taxes, financial distress, and agency problems. Other topics include financial derivatives and their applications in financial management. Course is a continuation of FINA 3320.