Rovira y Virgili
Educational guide 
Faculty of Economics and Business
A A 
Graduate in Finances and Accounting
Topic Sub-topic
UNIT 1. Leverage and risk
1.1. Concept and definition.
1.2. Operating leverage and financial leverage
1.3. ROE analysis.
1.4. Operating and financial risk. Measures.

UNIT 2. Cost of capital
2.1. Concept and determinants of cost of capital
2.2. The cost of equity capital. Models.
2.3. The cost of debt.
2.4. Weighted average cost of capital (WACC).

UNIT 3. Capital Structure
3.1. The problem of capital structure.
3.2. The Traditional Thesis.
3.3. The Modigliani-Miller Theorem (MM)
3.4. Trade off theory.
3.5. Other determinants.
UNIT 4. Dividend Policy
4.1. Introduction to the dividend policy problem.
4.2. Dividend policy in a perfect market.
4.3. Gordon-Shapiro model.
4.4. Why dividend policy matters?