The firm is a nexus of contracts among its various stakeholders (managers, shareholders, debt holders etc.). In this course, we will examine how value can be created, and how real world conflicts (of interest) between the various stakeholders of a firm lead to deviations from “perfect world” solutions. We will also examine ways to mitigate such conflicts. Topics covered include investment decisions, financing decisions, asymmetric information and signaling, payout decisions, contracting decisions and performance metrics, real options, and diversification. Topics covered may vary from semester to semester.