FM422     
Corporate Finance

This information is for the 2016/17 session.

Teacher responsible

Amil Dasgupta

Dirk Jenter

Availability

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

Pre-requisites

Aimed at people with a good undergraduate degree and good quantitative skills, with some knowledge of economics.

Course content

  • Financing
  • Valuation

This core course provides a broad introduction to the key issues in corporate finance. The first half of the course, the Financing Module, investigates how companies should finance their activities by issuing securities (debt, equity and convertible claims) and the interaction of business policy with financial policy. The aim is to understand what factors determine optimal capital structure and how the interplay of these factors can affect financing decisions in a way that creates value. The second half of the course, the Valuation Module, covers firm and project valuation and establishes how companies should select among investable assets. The module focuses on fundamental valuation techniques based on discounting future case flows. The course goes on to introduce further valuations methods, such as real options analysis, as well as key applications of valuation concepts to major corporate decisions such as mergers and acquisitions and initial public offerings. The course interweaves key conceptual material with a series of cases.

Teaching

60 hours of lectures in the MT.

Formative coursework

Regular classworks will be completed, handed in and marked as part of formative assessment for this course.

Indicative reading

The recommended textbooks for this course are Berk and DeMarzo, Corporate Finance and Higgins, Analysis for Financial Management. Other recommended readings from relevant journal articles will be included in a study pack.

Assessment

Exam (80%, duration: 3 hours) in the main exam period.
In class assessment (20%) in the MT.

Key facts

Department: Finance

Total students 2015/16: 132

Average class size 2015/16: 64

Controlled access 2015/16: Yes

Value: One Unit

Guidelines for interpreting course guide information

Personal development skills

  • Team working
  • Problem solving
  • Communication
  • Application of numeracy skills
  • Commercial awareness
  • Specialist skills

Course survey results

(2012/13 - 2014/15 combined)

1 = "best" score, 5 = "worst" score

The scores below are average responses.

Response rate: 48%

Question

Average
response

Reading list (Q2.1)

2.1

Materials (Q2.3)

1.8

Course satisfied (Q2.4)

1.7

Lectures (Q2.5)

1.7

Integration (Q2.6)

1.7

Contact (Q2.7)

1.9

Feedback (Q2.8)

1.9

Recommend (Q2.9)

Yes

88%

Maybe

12%

No

0%