This module, in conjunction with International Corporate Finance 2, aims to build on the theoretical and practical knowledge gained in Financial Management and Investment Analysis and give students an appreciation of the key strategic issues affecting company finance.
Central Corporate Finance Functions and Goals
Central Corporate Finance Functions [Raising capital/Capital budgeting/Financial management/ Corporate governance/ Risk management].Goals of International Corporate Financial Management. Agency theory and analysis
Valuation of shares and bonds, risk and return
Discounted present value techniques / Detailed cost of capital calculations/ Valuations of bonds and bond management/ Share and company valuation using various techniques / The trade off between risk and return / Risk and return and The Capital Asset Pricing Model.
Capital structure theories
Theories of capital structure including Modigliani and Miller and the Traditional theories. Real World influences on Capital Structure and the impact of changes in the cost of capital of an enterprise.Business and financial risk. Impact of high leverage. The effect of corporate taxes. Trade off , Signalling and Pecking Order theories.
Portfolio theory and Efficient Market Theory
Expected Returns and standard deviations /Correlation and covariance /Investor preferences /Risk free investments/Capital Market Line/Diversification/Practical Application of Portfolio Theory/Problems with Portfolio Theory/Theory and impact of Efficient Market Theory/
Corporate finance theories in the context of real-life business issues
Study and analysis of the financial press, specifically the Financial Times and the Sunday Business Post.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Other Assessment(s) | 30 |
| Formal Examination | 70 |