FM414      Half Unit
Corporate Investment and Financial Policy

This information is for the 2016/17 session.

Teacher responsible

Dr Pedro Chauffaille Saffi


This course is available on the MSc in Finance (full-time) and MSc in Finance and Private Equity. This course is not available as an outside option.


Students must have completed Asset Markets (FM423) and Corporate Finance (FM422).

Course content

  • Supporting the firm's strategy with Long-term and short-term financial management
  • Real options and strategic investment decisions
  • Family firms, IPOs, and corporate governance
  • Risk management, International valuation, and currency exposure

A case based course aimed at deepening the understanding of how to apply corporate finance concepts in a wide variety of business situations. In particular, we will try to build on concepts in business strategy, valuation techniques, and capital structure theories covered in previous courses, and see how to apply those tools in a systematic and rigorous way when approaching complicated real-life corporate finance problems. Examples of topics include working capital management, capital structure, risk management, real options, initial public offerings, international corporate finance, and family firms. Students will have to read up on cases before class and be prepared to discuss them interactively in class.


30 hours of seminars in the LT.

Formative coursework

5 formative case study assignments (similar to summative cases).

Indicative reading

Berk and DeMarzo, "Corporate Finance"

-Around 10 case studies

-A number of related scientific articles, including:

Opler, Tim, M. Saron, & S. Titman, 1997, "Designing Capital Structure to Create Shareholder Value," Journal of Applied Corporate Finance 10.1, 21-32 Bodily, Samuel E., 2005, "Real Options", Darden case study UV0433-PDF-ENG

Froot, Kenneth, David Scharfstein, and Jeremy Stein, 1994, "A Framework for Risk Management," Harvard Business Review 72, (November-December 1994): 59-71.

James, Mimi, and Timothy M. Koller, "Valuation in Emerging Markets," McKinsey Quarterly 2000:4


Exam (70%, duration: 2 hours) in the main exam period.
Coursework (20%) and class participation (10%) in the LT.

Key facts

Department: Finance

Total students 2015/16: 61

Average class size 2015/16: 64

Controlled access 2015/16: Yes

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Team working
  • Communication
  • Application of numeracy skills
  • Commercial awareness