The University of Southampton
Courses

ECON6030 Principles of Corporate Finance

Module Overview

The module will cover the fundamental concepts and tools underlying corporate finance.

Aims and Objectives

Module Aims

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.

Learning Outcomes

Learning Outcomes

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.

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 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

TypeHours
Teaching40
Independent Study160
Total study time200

Resources & Reading list

The theory of Corporate Finance. 

Principles of Corporate Finance. 

Other course information available via Blackboard. 

Assessment

Summative

MethodPercentage contribution
Coursework 10%
Exam  (3 hours) 90%

Referral

MethodPercentage contribution
Exam 100%
Share this module Facebook Google+ Twitter Weibo

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×