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Corporate Finance

Overview

  • Credit value: 30 credits at Level 6
  • Tutor: David Schroeder
  • Prerequisites: basic understanding of valuation and portfolio choice principles, as presented in Principles of Finance; probability theory
  • Assessment: final examination in May/June (70%), coursework (20%) and a company challenge (10%)

Module description

The module aims to give a thorough understanding of the foundation of modern corporate finance with applications to business decisions.

In the first part of the module, you will re-examine the basic pricing and valuation principles from the perspective of the financial manager of a firm. You will discuss how to evaluate investment projects using the net present value criterion, first considering investments in a risk-free world, but then extending the analysis when risk considerations are necessary. You will then turn to the core concepts of corporate finance, the controversies surrounding the irrelevance of dividend and debt policies. A particular focus will be on the principal-agent conflicts that impact the optimal decisions of a firm. Finally, you will look into option pricing, and its application to investment decisions.

Company challenge

Besides the lectures, the module includes a 'company challenge' in which you will analyse a company of your choice along the dimensions of Corporate Finance studied in the module

Learning objectives

By the end of this module, you will be able to assess the corporate finance aspects of any company.