Dr Mungo Wilson

This course is available on the CEMS Exchange, IMEX Exchange, MSc in Management, MSc in Management (CEMS MIM), MSc in Management (MiM Exchange) and MiM Exchange. This course is available with permission as an outside option to students on other programmes where regulations permit.

This course is not open to students on the MSc Accounting and Finance or the MSc Finance and Economics.

This course cannot be combined with FM430 Corporate Finance and Asset Markets or FM431 Corporate Finance A. 

This course provides an overview of financial decision making at a corporate level. The contents of the course should help students to understand the main strategic decision of a firm from a financial perspective. The first part of the course covers project evaluation. This includes the determination of a firm's cost of capital and the relevant techniques to evaluate new investment projects. Then the course movers into the determination of the optimal capital structure of a company. This includes considerations such as taxes or expected costs of financial distress, but also issues such as incentives or signalling via capital structure and via dividends. The course closes with more advanced topics such as the issuance of convertible bonds, mergers and the decision of the firm to list its shares on the stock exchange.

30 hours of lectures in the LT.

Weekly problem sets.

Brealey, Myers and Allen, Principles of Corporate Finance.

Exam (100%, duration: 2 hours) in the main exam period.