FM422 One Unit
Corporate Finance
This information is for the 2025/26 session.
Course Convenor
Prof Daniel Ferreira
Availability
This course is compulsory on the MSc in Finance (full-time), MSc in Finance (full-time) (Work Placement Pathway), MSc in Finance and Private Equity and MSc in Finance and Private Equity (Work Placement Pathway). This course is not available as an outside option to students on other programmes. This course uses controlled access as part of the course selection process.
All students on a programme listed under the Course Availability will be given a place. This course is closed to outside students and does not permit auditing students.
Please contact finance.teachingmanager@lse.ac.uk with any queries.
This course does not permit auditing students.
Requisites
Additional 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 finance their activities by issuing securities (debt, equity and convertible claims) and how business policy interacts with financial policy. The aim is to understand what factors determine optimal capital structures and how the interplay of these factors affects financing decisions. 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 cash 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 Autumn Term.
This course is taught in an interactive lecturing format. There is no distinction between lectures and classes/seminars; there are “sessions” only, and the pedagogical approach in each session is interactive.
Formative assessment
Regular homework will be completed as part of the formative assessment for this course.
Indicative reading
The recommended textbook for this course is Berk and DeMarzo, Corporate Finance. Other recommended readings will be included in a study pack.
Assessment
Continuous assessment (100%)
Key facts
Department: Finance
Course Study Period: Autumn Term
Unit value: One unit
FHEQ Level: Level 7
CEFR Level: Null
Total students 2024/25: 179
Average class size 2024/25: 90
Controlled access 2024/25: YesCourse 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
- Team working
- Problem solving
- Communication
- Application of numeracy skills
- Commercial awareness
- Specialist skills