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The University of Southampton
Courses

ECON6015 Finance

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:

  • Acquire an understanding of firm financial objectives, the dimensions of firm financial decision making.
  • Understand why financing decisions fundamentally determine t he 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 firm's financing decisions.

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

.

TypeHours
Independent Study76
Teaching24
Total study time100

Resources & Reading list

Other course information available via Blackboard“Lecture slides” available on Blackboard. 

Brealey R, Myers S.C. and Allen F (2011). Principles of Corporate Finance. 

Tirole J (2010). The Theory of Corporate Finance. 

Assessment

Summative

MethodPercentage contribution
Exam  (2 hours) 100%

Referral

MethodPercentage contribution
Exam  (2 hours) 100%

Repeat Information

Repeat type: Internal & External

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