Second year module
Lecturer: J.L. Woollam
This module aims to: build upon the material covered in Elementary Managerial Finance (Year 1), and provide a smooth transition to Advanced Finance (Year 3); provide a thorough grounding in the analytical tools for corporate financial management, focussing on the key investment and financing decisions of modern corporates; enable students to develop a critical approach to recent developments in finance theory and their applications to corporate financing and investment management; blend theoretical and practical issues in corporate finance
By the end of the module the student will be able to: demonstrate the application of investment appraisal techniques within the framework of overall capital budgeting, and explain the advantages and disadvantages of the discounted cash flow techniques; describe the relationship between portfolio theory and efficient markets; demonstrate the techniques available to apply such models as the capital asset pricing model (CAPM) to evaluating capital investment decisions which incorporate risk; estimate the cost of equity, cost of debt and overall weighted average cost of capital for a UK Plc; critically appraise the major models proposed to explain corporate capital structure and dividend policies and practices.
2 hr written examination 70%
Mid-term test 30%