We analyze capital allocation in a conglomerate where divisional managers with uncertain abilities compete for promotion to CEO. A manager can sometimes gain by unobservably adding variance to divisional output. Capital rationing can limit this distortion, increase productive efficiency, and...

This course uses intensive analysis of case studies to develop the student's ability to make financial decisions. The topics run the gamut of corporate financial decisions, including performance evaluation, working capital management, dividend policy, capital structure policy, use and valuation...