Introductory description

This module is designed to provide students with MSc Finance level knowledge of Corporate Finance problems and how to tackle them.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

Valuation
Financing and capital structure
Capital structure and frictions
Capital structure and incentives: financial contracting
Capital budgeting: foundations
Capital budgeting: extensions
Capital budgeting: real options
Corporate risk management
Payout policy and cash management
Corporate governance

Learning outcomes

By the end of the module, students should be able to:

• Discuss the key issues involved in capital budgeting, capital structure, risk management, payout and governance decisions.
• Assess models and theories of the above described decisions, vis-a-vis empirical evidence, in different context and assumptions.
• Critically evaluate different techniques for the above listed problems, so to use the best approach given the circumstances of each corporate finance problem.

Indicative reading list

The core reading for this module consists of selected chapters from:
Berk, J., and P. DeMarzo “Corporate Finance,” 4th (global) edition Pearson;
and notes prepared by the lecturer.
For a lower level preparatory reading (for those who have not taken any corporate finance before)
Hillier, D., S. Ross, R. Westerfield, J. Jaffe, and B. Jordan“Corporate Finance,” 2nd (European) edition. McGraw Hill.

Subject specific skills

Use modern valuation techniques to solve problems in capital budgeting, capital structure, risk management, and payout decisions.

Transferable skills

Written skills.
Problem solving.