This graduate-level course introduces the tools and concepts of Corporate Finance, offering a framework for understanding and analyzing corporate financial decisions. It provides both a theoretical and empirical examination of key Corporate Finance topics crucial for understanding firm value and security pricing. The course emphasizes fundamental principles and quantitative tools, ensuring a rigorous and analytical approach.
The module examines the theory and practice of corporate finance decision making and builds on that via real life applications. It covers the cost of capital, capital budgeting and discounted cash flow analysis as foundations and goes further with applications, related academic literature and case studies. It describes the factors influencing the firm capital structure along with the models of agency theories, the trade-off theory and asymmetric information. Also, the module examines corporate governance, which includes the role of ESG and business ethics, as well as corporate control and mergers and acquisitions. In addition, the module provides an understanding of international corporate finance.Â
This module aims to provide a rigorous introduction to the principles underlying financial decision making by corporations. The course covers the fundamental concepts of corporate finance that students learned in pre-requisites, such as corporate governance and capital structure, and more advanced topics such as financing decisions using equity and risky debt, corporate risk management using derivatives, capital budgeting using real options, corporate payout policy, merger and acquisition.