Introduce concepts of Advanced Corporate Finance, which combines aspects of corporate finance and value-based management. The focus is on understanding the relationships between investments and financing decisions on shareholder value. Analysing these relationships is essential in managing a firm for value. The module introduces the concept of firm valuation using DCF or alternative methods. Strategic decisions on capital structure, investment policy (e.g. diversification), corporate governance and dividend policy are examined with regard to their value creation potential. The module is a compulsory module on the MSc Finance, as it combines strategy various disciplines such as finance, accounting and management. The module will focus on case studies to highlight its practical relevance. It builds on the material covered in Introduction to Finance (MANG6295) taught in semester 1.
In contrast to more specialised modules taught on the MSc Finance, the proposed module integrates corporate finance and accounting into the wider strategic issues companies face. The module will be taught in the second semester, and Introduction to Finance (MANG6295) is a pre-requisite to studying this module. The module will introduce methods developed in finance to value companies, to assess investment decisions and to analyse other strategic decisions (e.g. mergers and acquisitions). However, the module will stress the relationship between value creation (finance) and management decisions. This is different compared to finance module offered on other programmes (e.g. MSc International Financial Markets, MSc International Banking and Financial Studies). Hence, it is not a standard finance module. The module will be also available as an option for the MSc Risk and Finance. The module bridges the gap between providing a functional expertise in finance and applying the concepts of finance in practice.