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Subject details

  • Topics
    • Overview
    • Corporate Finance and the Theory of Firm
    • Capital Budgeting 1: Principles and Methods
    • Capital Budgeting 2: The Application of Valuation Methods
    • Dividend Policy
    • Capital Structure Decision
    • Cost of Capital
    • Leasing
    • Corporate Acquisition
    • Corporate Restructuring
    • Pension Plans
  • Study resources
    • Instructional Methods
      • Disscusion forum/Discussion Board
      • Web links
      • Online assignment submission
    • Online Materials
      • Resources and Links
      • Printable format materials

On successful completion of this subject you will be able to:

  • CLO1: Apply the financial concepts and tools of corporate finance to the firm’s investment decisions, its opportunity cost of capital, factors affecting the valuation of bonds and stocks, as well as the firm’s capital budgeting and leasing decisions
  • CLO2: Apply knowledge of corporate strategic decision making in the context of complex environments and competitive dynamics
  • CLO3: Understand the nature of leverage and the constraints borrowers face in its use
  • CLO4: Determine the natures of dividend policy and assess various dividend models
  • CLO5: Understand the motivation and procedures for mergers and acquisitions
  • CLO6: Apply financial knowledge to real problems in business and recognise the practical difficulties in applying the theory.
  • Assignment 1 - Quizzes - Linked CLOs: 1, 2, 3, 4, 5, 6 (30%)
  • Assignment 2 - Project - Linked CLOs: 1, 3, 4 (20%)
  • Assignment 3 - Invigilated Exam - Linked CLOs: 1, 2, 3, 4, 5, 6 (50%)

Textbooks are subject to change within the academic year. Students are advised to purchase their books no earlier than one to two months before the start of a subject

No eligibility requirements

Special requirements

No special requirements

The subject builds on the concept of net present value so as to account for uncertainty, taxes and strategic concerns before using these concepts to analyse financing and investment decisions from the perspective of financial managers. You will develop the basic framework for decision-making and you will investigate the theories of corporate finance, the analytical techniques used to value assets, and various aspects of the financial markets. In this context, this subject will explore the relationship between the investment and financing decisions, with particular emphasis on capital budgeting, dividend policy, capital structure, leasing decision and corporate acquisition.

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