This module aims to build on the theoretical and practical knowledge gained in International Corporate Finance 1, Financial Management and Investment Analysis. It seeks to provide students with a comprehensive knowledge of the key strategic and corporate finance issues affecting company finance.
Enterprise Risk Management
Risk Policy formation. Risk management systems. Distinguish between risk mitigation, hedging and diversification strategies. Incorporate risk into corporate decisions.Impact on financing.
Foreign Exchange and Interest rate Risk
Introduction to foreign exchange and interest rate risk and use of financial derivatives for risk reduction. Transaction/ Translation/ Economic risks . Risk management tools [including Matching receipts and payments / Matching assets and liabilities/ Netting/ Money Markets/ Forward/ Futures / Options / Swaps]. Relationship between interest rates inflation and foreign exchange movements.
Mergers & Acquisitions, Re organisations & Liquidations
Valuation and payment methods (cash, shares etc.) Position of each shareholder type and lenders. Regulation. Post acquisition integration and management. Identifying financial distress. Di-vestments/ De-mergers/ sell-offs/ spin-offs/Management Buy Outs.Role of Venture Capitalist. Capital Reconstructions Schemes. Impact on stakeholders. Post Acquisition integration
Dividend Policy and Corporate Strategy
Dividend payment sequence and form.Dividend growth modelDividend policy debateResolutions to the dividend controversy.Traditional ‘Bird in hand’ theory.M & M dividend as a residual theory. Signalling and Clientele effects. Share repurchase and impact on shareholder wealth. Real world dividend policy decision.
Initial public offerings and other forms of finance
IPO's and seasoned equity offerings. Valuation difficulties for IPO's. Features of other finance types including preference shares warrants and convertibles. Entrepreneurial finance and venture capital.
Global Economic Environment
International Financial System. Appraisal of overseas investment decisions. Raising Capital Overseas. Financial Control Within Multinationals. Management of International Trade.
Business and Financial press
Identify, explain and evaluate corporate finance theories in the context of real-life business issues described in the business press.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Other Assessment(s) | 30 |
| Formal Examination | 70 |