This module provide students with a solid grounding in corporate finance, its application in share valuation within international capital markets and focuses on the decisions faced by corporate financial managers.

The course builds on students existing knowledge of discounted cash flow technique and covers more advanced capital budgeting, taking into account inflation, uncertainty and tax. Simulation and scenario analysis are covered and concept of a real option is introduced. The students are introduced to the international capital markets, and the main approaches to share valuation are discussed and contrasted. The importance of the assessment of risk and its impact on returns from financial assets are introduced, leading to an assessment of the cost of capital for a firm. The theory of the firm is explored in more detail, under the framework of agency theory. Dividend policy is studied, by reference to theory, taxation, the value of the firm and the wealth of shareholders. Capital structure is covered from a similar perspective. Mergers and acquisitions are evaluated. Ideas around the impact of corporate financial decisions on wider stakeholder groups and society more generally are discussed.

Value financial securities within international financial markets; Critically evaluate the alternative investment appraisal techniques; Incorporate uncertainty, inflation and tax into the evaluation of internal investments; Understand and be able to assess the importance of risk within firm investments and financial markets; Calculate the opportunity cost of capital for a firm; Formulate appropriate policies on capital structure and dividend policy; Differentiate between successful and unsuccessful merger propositions

Develop an awareness of the impact of corporate financial decisions on all stakeholder groups and wider society

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The module will be delivered in a series of lectures and tutorials. The module seeks to develop students who are knowledgeable about the theoretical and fundamental mathematical concepts underlying corporate financial decision making. Students receive weekly problem sets which must be conducted before attending weekly tutorials. The assignments focus on problem solving and decision-making with solutions provided in tutorials as well as discussions about the issues relevant to decisions under examination. This focus on problem-solving requires students to articulate their knowledge and collaborate with classmates on developing their mathematical skills. Within the module current theory and recent research on capital structure, dividend policy and merger evaluation are discussed. In addition, recent developments within the international financial markets form a constant backdrop to the material presented in the module.