Accounting and Finance
Corporate and International Finance
Module code: N1563
Level 5
15 credits in spring semester
Teaching method: Lecture, Seminar
Assessment modes: Unseen examination, Coursework
This module has two aims:
- to foster critical understanding of the important ideas and analytical tools used in corporate financial decision making
- to develop an appreciation of the challenges to implementing these ideas and tools via debate in the corporate finance literature and events reported in the financial press.
Topics include:
- the corporation
- the nature of financial decision-making
- interest rates
- valuing bonds and stocks
- investment decision rules
- capital budgeting
- capital markets and the pricing of risk
- portfolio choice and the capital asset pricing model
- the cost of capital
- investor behaviour and capital market efficiency
- capital structure in a perfect market
- debt and taxes
- financial distress
- managerial incentives and information
- payout policy
- mergers and acquisitions.
Module learning outcomes
- Demonstrate understanding of the essential principles and analytical tools of corporate finance
- Critically discuss and evaluate these principles and analytical tools
- Relate the principles and tools, and the debates surrounding them, to today's events, appreciating the difficulties of applying the theory to the real world.
- Demonstrate the ability to form judgments and take decisions in the face of uncertainty while armed with inadequate ideas and tools.