APPLIED CORPORATE FINANCE

UNIT DESCRIPTION

This unit explains the fundamentals of finance, addressing areas such as financial markets and financial decision-making. The unit stresses the modern fundamentals of corporate financial decision making with special reference to investment and distribution decisions in the context of a capital market structure and efficiency. While building upon introductory courses in accounting, economics and quantitative analysis, the unit develops distinctive conceptual frameworks and specialised tools for solving real world financial problems at both the individual and corporate level.

This includes developing valuation methods for valuing projects and securities. In addition, basic portfolio theory is discussed to develop simple asset pricing models and used for determining the cost of capital for use in investment evaluation. The implications of different financing options (debt and equity) are considered, and elementary capital structure theorems are presented, in relation to which the dividend decisions are analysed. The question of market efficiency is considered and its implications for trading strategies are discussed.

The above looks at the role of borrowers, lenders, equity, security issuers and purchasers, and the sources of value for each.

By the end of this unit, students will have developed the understanding and skills necessary to help them make informed financial management decisions.

STUDENT WORKLOAD + DELIVERY MODE