Corporate Finance - MAN00002I
Related modules
Module will run
| Occurrence | Teaching period |
|---|---|
| A | Semester 1 2024-25 |
Module aims
Corporate Finance is at the core of any comprehensive business education as it covers a range of important topics that are considered critical to managerial decision making. It is truly the big picture module, which draws on accounting, statistics, economics, and several management disciplines to develop the first principle that should govern decision making within any size or form of business entity. Particular attention will be given to Investment, Financing and Profit Distribution decisions. However, considering the recent financial fiascos the teaching will come with required warnings; flagging the tension between “theory” and “practice”, ethical and societal issues, potential pitfalls, governance failures etc. Most of the topics will be covered at an intermediate level. Some mathematical content is unavoidable but should be fine for anyone comfortable with high school level mathematics or statistics. Additionally, students are encouraged to analyse financial information of firms by using real data from financial reports and electronic databases like Worldscope, CSMAR, I/B/E/S, Compustat and CRSP among others.
Module learning outcomes
By the end of the course students should be able to:
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critically evaluate the role of financial markets in issuing publicly traded debt and equity securities, and promoting public good through sustainable business practices;
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understand how/when financial theories depart from reality, and how corporate finance decision tools can be used to shape corporate purpose, sustainability and governance of firms;
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evaluate investment decisions using discounted cash flow techniques under the assumptions of certainty;
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calculate and apply appropriate costs of capital for equity and/or debt financed companies;
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analyse the impact of dividend and leverage policy on firm value, investment decisions and costs of capital;
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demonstrate critical knowledge and understanding of the key issues in the mergers and corporate restructuring.
Academic and graduate skills developed:
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Critical and reflective understanding of narratives that drives corporate finance decisions in firms.
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Assimilate and critique, sometimes paradoxical, theories of different theoretical schools.
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Analytical, numerical, leadership and problem-solving skills.
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Business strategy understanding and analysis.
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Ability to independently conduct research and analysis of financial issues in firms through data collection, analysis, synthesis, and reporting.
Module content
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Corporate structure, objective, financing and governance
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Debt and Equity Valuation
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Investment appraisal, project financing and analysis
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Risk and Cost of capital
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Capital structure
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Payout policy
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Mergers and corporate restructuring
Indicative assessment
| Task | % of module mark |
|---|---|
| Closed/in-person Exam (Centrally scheduled) | 100 |
Special assessment rules
None
Indicative reassessment
| Task | % of module mark |
|---|---|
| Closed/in-person Exam (Centrally scheduled) | 100 |
Module feedback
Feedback will be given in accordance with the University Policy on feedback in the Guide to Assessment as well as in line with the School policy.
Indicative reading
Brealey, R. A., Myers, S. C., Allen, F., and Edmans, A. (2022). Principles of Corporate Finance (14th ed.). McGraw-Hill Education.
Damodaran, A. (2014). Applied Corporate Finance (4th ed.). John Wiley & Sons.
Asquith, P., & Weiss, L. A. (2019). Lessons in Corporate Finance (2nd ed.). John Wiley & Sons.