School of Management, Unit Catalogue 2009/10 |
MN50180: Fundamentals of corporate finance |
 Credits:
| 6 |
| Level:
| Masters |
| Period: | Semester 2 |
| Assessment:
| EX 100% |
| Supplementary Assessment: | Like-for-like reassessment (where allowed by programme regulations) |
| Requisites:
| |
| Description: | Aims: Students will analyse issues relating to new investment appraisal, cost of capital, and the effect of capital structure on firm value. Students will consider the effects of managerial incentives and signalling on a firm's financing decisions. The course will then proceed to consider convertible debt and risk management. Specific issues such as takeovers and bankruptcy will be considered. Learning Outcomes: After completing the unit, the student should be able to: * Perform calculations relating to corporate financing decisions. * Demonstrate an understanding of the results of these calculations. * Discuss the issues involved in corporate finance decisions. Skills: Intellectual skills * The ability to perform advanced investment appraisal and capital structure techniques. TFA * The ability to assess mergers and takeovers. TFA * The ability to price options. TFA Professional/practical skills. * The ability to present corporate finance decisions to management. TFA Transferable/key skills * The ability to apply financial techniques to management decisions. TFA Personal/interpersonal * The ability to communicate information regarding complex financial decisions to users of such information. TFA. Content: New Investment Appraisal. Cost of Capital, Capital Structure, and Firm Value. Optimum Capital Structure, with regard to tax, agency costs, and signalling. Convertible debt. Risk Management. Dividend Policy. Takeovers. |