This course extends fundamental concepts of corporate finance and asset pricing introduced in the core . The course is required for finance concentrators and prepares them for all finance electives offered in the second year. Corporate finance concepts covered are capital structure decisions, payout policy decisions, and real options. Asset pricing topics include market efficiency, multifactor models for the risk and return, arbitrage pricing theory and contingent claim analysis and its use in valuation and risk management. The concepts are illustrated in practical examples that prepare students for their summer internships.