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The University of Southampton

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.


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

Independent Study76
Total study time100

Resources & Reading list

Tirole J (2006). The Theory of Corporate Finance. 

Brealey R, Myers S.C. and Allen F (2014). Principles of Corporate Finance. 

Other course information (including reading and lecture material) available via Blackboard . 



MethodPercentage contribution
Assessment 90%
Participation 10%


MethodPercentage contribution
Assessment 100%


MethodPercentage contribution
Assessment 100%

Repeat Information

Repeat type: Internal & External

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