Prof Christopher Polk OLD 4.32

Dr Richard Payne

This course is compulsory on the BSc in Accounting and Finance, BSc in Statistics with Finance and Diploma in Accounting and Finance. This course is available on the BSc in Actuarial Science, BSc in Business Mathematics and Statistics, BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Management, BSc in Management Sciences, BSc in Mathematics and Economics, BSc in Philosophy and Economics and BSc in Social Policy and Economics. This course is available as an outside option to students on other programmes where regulations permit. This course is available with permission to General Course students.

Elementary economics and quantitative methods.

The course examines the theory of financial decision-making by firms and examines the behaviour of the capital markets in which these decisions are taken. The topics covered are the theory of capital budgeting under certainty in perfect and imperfect capital markets, portfolio theory, equity and bond markets, the capital asset pricing model, efficient markets, sources of funds, basic theory of capital structure and the cost of capital, company dividend decisions and financial markets and institutions.

20 hours of lectures and 9 hours of classes in the MT. 20 hours of lectures and 10 hours of classes in the LT. 4 hours of lectures and 3 hours of classes in the ST.

Students are expected to produce written work for classes and to make positive contributions to class discussion.

Detailed course programmes and reading lists are distributed at the start of the course. Illustrative texts include: Grinblatt & Titman, Financial Markets and Corporate Strategy (Irwin, McGraw-Hill) or Brealey, Myers and Allen, Corporate Finance (McGraw-Hill).

Exam (100%, duration: 3 hours) in the main exam period.