The aim of the Corporate Finance module is to develop your understanding of key financial topics that are required in a corporate decision-making setting. Theoretical and practical settings will be explored. It builds on previous learnings in financial classes and covers key topics in corporate finance in more depth, while also exposing you to emerging issues in corporate finance practice. The module begins with the basic principles of a firm, a firm’s varied objectives, and how a corporate entity operates within an industry. You will be introduced to contemporary discussions on corporate objectives and project appraisal goals, with a focus on sustainability and responsible governance practices. As you develop your knowledge throughout this module, you will learn to appreciate nuances in designing, appraising, and abiding by capital budgeting and firm culture policies. This will include explorations into stakeholder engagement policies, short- and long-term financial policies, capital structure policies, project appraisal policies, and dividend policies. This module also covers core mathematical principles used to enhance financial decision-making in a corporate context. You will be reintroduced to the time value of money concept and techniques used in discounting future and expected cash flows. You will learn to appreciate the concept of the cost of capital and how firm decisions are shaped by external economic and tax factors. You will also be reintroduced to investment appraisal techniques. You will make capital investment appraisals in domestic and international contexts, and arrive at justified valuations and decisions on capital investment projects, real options, and merger and acquisition opportunities.

The module covers fundamental issues in corporate finance, including sessions on 'The Firm and Industry Organisation' (e.g. Firm Objectives; Shareholders vs. Stakeholders; Sustainable and ethical decision-making; Firm culture and Stakeholder engagement), 'Valuing Cash Flows' (e.g. Discounted cash flow techniques; Valuing Debt and Equity; Cost of Capital & Tax Considerations), 'Capital Investment Appraisals and Decisions' (e.g. Investment Appraisal Policy; Investment Projects & Risk Assessment; Real Options; Incentives, Benefits, and Rebates: Sustainability Considerations), 'Payout policy', 'Advanced Capital Budgeting' (e.g. Capital structure for optimal performance; Short- and long-term financing decisions) and 'Mergers & Acquisitions' (e.g. Competitive Forces in a Market, Vertical and Horizontal Integration, Synergy identification, Takeover Strategies, M&A Valuations)

On successful completion of this module, students will be able to: Recall the corporate finance function within an incorporated firm. Identify the importance of risk within firm investments and financial markets. Identify appropriate merger and acquisition opportunities using strategic industry insights and valuation techniques. Analyse firm policies on capital structure and payout strategies. Appraise investment proposals with due consideration for risk, financing mechanisms, tax, and real options. Identify competing firm objectives across stakeholder groups and wider society.

On successful completion of this module, students will be able to: Value the ethical, social, and sustainability implications of corporate financial decisions.

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The module will be delivered in a series of research-informed lectures and tutorials. The module seeks to actively develop the students’ knowledge about the theoretical and fundamental mathematical concepts underlying corporate financial decision-making. Students receive and engage with the applied problem sets before attending weekly interactive, inclusive tutorials where they can articulate the relevant issues in a student-centred setting. This focus on problem-solving promotes the university graduate attributes by requiring students to articulate their knowledge and collaborate with classmates on developing their mathematical skills and theoretical understanding. Within the module, current theory and recent research on capital structure decisions, investment decisions, payout policy and merger evaluation are discussed. In addition, recent developments within the international financial markets and the geopolitical landscape provide a dynamic and contemporary context to frame corporate financial decision-making.