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Academic Year: | 2013/4 |
Owning Department/School: | School of Management |
Credits: | 6 |
Level: | Intermediate (FHEQ level 5) |
Period: |
Semester 2 |
Assessment: | EX 100% |
Supplementary Assessment: |
Like-for-like reassessment (where allowed by programme regulations) |
Requisites: | Before taking this unit you must take MN20026 |
Description: | Aims: In addition to the theoretical issues, students will gain an understanding of the practical issues involved in a firm's investment and financing decisions. Students will analyse issues relating to new investment appraisal (particularly decision trees, risk analysis, and real options), cost of capital (CAPM versus APT), and the effect of capital structure on firm value (particularly the effects of managerial incentives and signalling on a firm's financing decisions). The course will then proceed to consider convertible debt, and optimal risk management policies. Learning Outcomes: By the end of this unit, the student should be able to: * perform numerical analyses of investment appraisal and capital structure decisions; * discuss the results of the aforementioned analyses; * write management-style reports recommending optimal investment and financing policies, considering all of the issues involved. Skills: Intellectual skills: * the ability to perform 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. Analysis of distressed companies. Takeovers. (A recommended complementary course, which analyses pricing issues is Introduction to Finance and Financial Markets). |
Programme availability: |
MN20211 is Compulsory on the following programmes:School of Management
MN20211 is Optional on the following programmes:School of Management
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