Corporate Finance
EMEC003S6 (30 credits)
Lecturer: David Schroeder
Aims
To provide an understanding of corporate finance theory with applications to business decisions.
Objectives
On successful completion of this course, students should:
- know the various facets of corporate finance;
- know how to evaluate investment projects using the net present value criterion;
- be able to assess the trade-off between risk and return of any portfolio;
- be able to critically assess the controversies surrounding the irrelevance of dividend and debt policies;
- be able to assess the implications of bankruptcy costs and debt-equity holder conflicts;
- be able to assess the effects of taxes on dividends and shares;
- know how to price options, when to buy or sell an option;
- be able to assess cost and benefits of a merger.
Assessment
The three-hour June exam counts for 80% and an assignment over the Christmas vacation counts for the remaining 20%.
Reading
- Grinblatt, M & S Titman, Financial Markets and Corporate Strategy, McGraw-Hill, 2001 (2nd edition)
- Brealey, Myers and Allen, Principles of Corporate Finance, McGraw-Hill, 2005 (8th edition)