Learning Outcomes:
Upon completion of this module, students should understand why corporate finance is important and have a comprehensive understanding of the role of corporate governance and agency theory within firms. Students should be able to value stocks and bonds and to understand how the equity markets function. Students will be able to apply the techniques of capital budgeting, and identify capital investment projects that maximize shareholder wealth. Students will also be introduced to the concepts or risk and return and the basic principles of portfolio theory.
Indicative Module Content:
Topics covered include:
- Corporate Governance
- Financial Analysis
- Introduction to Valuation: The time value of money
- Discounted Cashflow Valuation
- Bond Valuation/Bond Markets
- Equity Valuation/Equity Markets
- Capital Investment Decisions
- Introduction to project analysis
- Risk, return, and the Capital Asset Pricing Model
- The cost of capital
- Raising capital