Module overview
To equip students with the fundamental concepts and tools underlying firms finance. It provides students with a deeper understanding of the financial decisions faced by firms, and to investigate how these decisions can enhance or destroy firm value.
Aims and Objectives
Learning Outcomes
Learning Outcomes
Having successfully completed this module you will be able to:
- Comprehend how decisions of firms affect shareholders and investors.
- Acquire an understanding of firm financial objectives, the dimensions of firm financial decision making.
- Study how informational issues distort firm's financing decisions.
- Understand how the presence of real - life distortions affect the financing decisions of firms.
- Understand why financing decisions fundamentally determine t he value and cost of capital of the firm.
Syllabus
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, the presence of distortions, and signalling
Learning and Teaching
Teaching and learning methods
A mix of face-to-face and online lectures and exercises
| Type | Hours |
|---|---|
| Teaching | 20 |
| Independent Study | 80 |
| Total study time | 100 |
Resources & Reading list
General Resources
Other course information (including reading and lecture material) available via Blackboard.
Textbooks
Brealey R, Myers SC, Allen F and Edmans A (2023). Principles of Corporate Finance. McGraw-Hill.
Tirole J (2006). The Theory of Corporate Finance. Princeton University Press.
Assessment
Assessment strategy
Assessment in this module is thorugh 100% end of module written examination. This is supported by continuous formative assessment through exercises and problem sets. This is the same for internal repeat. Assessment for external repeat and referral is through 100% end of module written examination as well.
Summative
This is how we’ll formally assess what you have learned in this module.
| Method | Percentage contribution |
|---|---|
| Examination | 100% |
Referral
This is how we’ll assess you if you don’t meet the criteria to pass this module.
| Method | Percentage contribution |
|---|---|
| Examination | 100% |
Repeat
An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.
| Method | Percentage contribution |
|---|---|
| Examination | 100% |
Repeat Information
Repeat type: Internal & External