FM431M      Half Unit
Corporate Finance A

This information is for the 2016/17 session.

Teacher responsible

Dr Juanita Gonzalez-Uribe


This course is compulsory on the MSc in Economics and Management. This course is available on the CEMS Exchange, IMEX Exchange, MSc in Accounting and Finance, MSc in Economics, MSc in Economics (2 Year Programme), MSc in Economics (Research), MSc in International Management, MSc in Law and Accounting, MSc in Management, MSc in Management (CEMS MIM), MSc in Management (MiM Exchange), MSc in Management and Strategy, MSc in Risk and Finance and MiM Exchange. This course is available with permission as an outside option to students on other programmes where regulations permit.


Basic Mathematics and Statistics knowledge. The course is self-contained but it covers a broad set of topics. Some prior knowledge of economics, finance and accounting is advised.

This course cannot be combined with FM430 Corporate Finance and Asset Markets or FM474 Finance II

Course content

The course covers range of topics in corporate finance starting with capital budgeting techniques, in relation to CAPM and other valuation instruments. The course then proceeds identifying the driving forces behind capital structure decisions and choices over debt and equity finance. Special consideration is given to the tax implications of those choices, the possible costs of financial distress, the incentive implications of financial decisions and the signalling impact of those for financial market participants. A final part of the course covers some specific topics in corporate finance: dividend policy, decision to go public, mergers and acquisitions and possibly (time permitting) corporate governance issues.


20 hours of lectures and 9 hours of seminars in the MT.

Formative coursework

At least two pieces of formative work will be assessed over the duration of the course. Students will be set will be set weekly problem set assignments, of which a minimum of two will be submitted and marked as formative assessment.

Indicative reading

J. Berk and P. DeMarzo, Corporate Finance, Pearson International Edition. Full details of reading will be specified in the Course Programme and Reading List which will be distributed at the first lecture.


Exam (100%, duration: 1 hour and 30 minutes) in the main exam period.

Please note this exam is the half unit version of the examination taken on FM430 Corporate Finance and Asset Markets. Any student who takes both FM429 and FM431 will be re-registered to sit the FM430 full-unit exam paper in Summer Term.

Key facts

Department: Finance

Total students 2015/16: 68

Average class size 2015/16: 16

Controlled access 2015/16: Yes

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Problem solving
  • Application of numeracy skills
  • Commercial awareness
  • Specialist skills