ECON6030 Principles of Corporate Finance
The module will cover the fundamental concepts and tools underlying corporate finance.
Aims and Objectives
To equip students with the fundamental concepts and tools underlying corporate finance. It provides students with a deeper understanding of the financial decisions faced by corporations, and to investigate how these decisions can enhance or destroy firm value.
Having successfully completed this module you will be able to:
- Acquire an understanding of corporate financial objectives, the dimensions of corpo rate financial decision making
- Understand why financing decisions fundamentally determine the value and cost of capital of the firm.
- Understand how the presence of real - life distortions affect the financing decisions of firms.
- Comprehend how decisions of firms affect shareholders and investors.
- Study how informational issues distort financing decisions.
Part I. Introduction to Risk and measures of Risk. Part II. Capital Structure (Financing and project valuation) • The Modigliani-Miller Propositions • Capital Structure and Dividend Policy: failures of the Modigliani-Miller propositions • Corporate Finance Under Asymmetric Information Part III. Payout Policy • The Modigliani-Miller Propositions revisited • Payout policy theories and the presence of distortions • Signalling Part IV. Determinants of Borrowing capacity and early performance monitoring. • Determinants of Borrowing Capacity, Boosting the Ability to Borrow • Monitoring in corporate finance Part V. Finance Papers
Learning and Teaching
|Total study time||200|
Resources & Reading list
The theory of Corporate Finance.
Principles of Corporate Finance.
Other course information available via Blackboard.
|Exam (3 hours)||90%|