This module builds on students’ practical and theoretical knowledge of corporate finance. The course is designed to develop students’ understanding of the links between the theory and practice of corporate financial management. It demonstrates the evolution of practical decision-making tools arising from corporate finance theory and focuses on the application and critical appraisal of these tools. In addition, it introduces students to the academic literature underpinning corporate finance theories and practices, with a view to preparing them to carry out critical reviews of literature in corporate finance.
Investment Appraisal
Implementation and critical assessment of appraisal methods. Estimating project cash flows. Accounting for risk and uncertainty in the appraisal process. Empirical research findings.
Cost of Capital
Types of long-term financing. Capital Asset Pricing Model. Weighted average cost of capital.
Capital Structure
MM Irrelevancy Theory. Theories of capital structure. Empirical research findings
Dividend Policy
MM Irrelevancy Theory. Theories of dividend policy. Other distribution methods. Empirical research findings.
Financial Markets and Market Efficiency
Primary and secondary markets. Financial intermediaries. Efficient Market Hypothesis. Behavioural finance. Empirical research findings.
Face to Face Teaching
Lecture-based approach using PowerPoint slides and practical exercises and various media sources.
Online Teaching
Live online classes and recorded screencasts will be used to supplement in-class face to face lectures.
Academic Literature
The course is focused on corporate finance theory, practice, and related academic literature. Consequently, the learning style will facilitate students in engaging with academic and practitioner journals.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 80 |
| Other Assessment(s) | 20 |