FM311 Half Unit
Corporate Finance, Investments and Financial Markets II
This information is for the 2025/26 session.
Course Convenor
Constantin Charles
Availability
This course is compulsory on the BSc in Accounting and Finance. This course is available on the BSc in Data Science, BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Management, BSc in Mathematics, Statistics and Business, Diploma in Accounting and Finance, Erasmus Reciprocal Programme of Study and Exchange Programme for Students from University of California, Berkeley. This course is freely available as an outside option to students on other programmes where regulations permit. It does not require permission. This course is freely available to General Course students. It does not require permission.
Permission forms from the General Course admin office should be submitted to the Department of Finance by email at finance.ug@lse.ac.uk with a copy of the transcript attached.
Requisites
Pre-requisites:
Before taking this course, students must have completed: ((FM215 and FM214) or (FM211 and FM210))
Co-requisites:
Students must complete FM310 either before taking this course or in the same year as this course.
Course content
This course is intended for third-year undergraduates and is a broad-based follow-up to Principles of Finance with an emphasis on the practical implementation of corporate financial policies. The course covers some topics in more depth than Principles of Finance and introduces several new topics that were not covered before. The course uses a combination of lectures, problem sets, and case studies such that students can apply the concepts using real-life situations.
The course examines theory and evidence concerning major corporate financial policy decisions. The goal of corporations is to take on the best possible projects (e.g. a plant expansion) and finance them in the best way possible (e.g. through profits, debt, or equity). The time and uncertainty of investment payoffs make these problems nontrivial and essential for long-term success.
The course will focus on answering the following questions:
(a) Valuation: How can we value and choose projects? What is the value of a company? What should be the expected return for a project, division, and the whole firm?
(b) Capital Structure: How should corporations obtain financing? For what projects?
Teaching
20 hours of lectures and 10 hours of classes in the Winter Term.
Formative assessment
Students are expected to complete weekly problem sets for classes and to make positive contributions to class discussion.
Indicative reading
Detailed course programmes and reading lists are distributed at the start of the course. Illustrative texts include: Brealey, Myers, Allen, and Edmans, “Principles of Corporate Finance,” McGraw-Hill.
Berk and DeMarzo, “Corporate Finance,” Pearson.
Assessment
Exam (90%), duration: 90 Minutes in the Spring exam period
Continuous assessment (10%)
Key facts
Department: Finance
Course Study Period: Winter Term
Unit value: Half unit
FHEQ Level: Level 6
CEFR Level: Null
Total students 2024/25: 232
Average class size 2024/25: 15
Capped 2024/25: NoCourse selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Personal development skills
- Problem solving
- Application of numeracy skills
- Commercial awareness
- Specialist skills