FM431A Half Unit
Corporate Finance A
This information is for the 2025/26 session.
Course Convenor
Cynthia Balloch
Availability
This course is compulsory on the MSc in Accounting and Finance and MSc in Economics and Management. This course is available on the Global MSc in Management, MSc in Econometrics and Mathematical Economics, MSc in Economics, MSc in Economics (2 Year Programme) and MSc in Finance and Risk. 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. Outside students should consider taking FM474 Managerial Finance as an alternative option instead.
Please contact finance.teachingmanager@lse.ac.uk with any queries.
This course cannot be combined with FM474 Managerial Finance.
This course is not capped, any eligible student that requests a place will be given one.
This course does not permit auditing students.
Outside students should consider taking FM474 Managerial Finance as an alternative option instead.
Requisites
Mutually exclusive courses:
This course cannot be taken with FM431W or FM473A or FM473W or FM474A or FM474W at any time on the same degree programme.
Additional requisites:
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.
Course content
The course provides a broad introduction to a range of key topics in corporate finance. The first part of the course investigates how companies finance their activities by issuing debt, equity, and other securities, and the interaction of business policy with financial policy. This illustrates 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. The second part of the course covers project valuation, discount rates, how future cash flows are discounted accounting for differences in capital structure and establishes how companies should select their investments. The course combines conceptual material with a series of cases, with an emphasis on the application of theory to real business decisions.
Teaching
20 hours of lectures and 10 hours of seminars in the Autumn Term.
Formative assessment
Students will be set weekly formative assignments. Solutions and guidance will be provided during the weekly lecture and seminar classes.
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.
Assessment
Exam (90%), duration: 90 Minutes, reading time: 10 minutes in the January exam period
Continuous assessment (10%)
Key facts
Department: Finance
Course Study Period: Autumn Term
Unit value: Half unit
FHEQ Level: Level 7
CEFR Level: Null
Total students 2024/25: 269
Average class size 2024/25: 89
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
- Problem solving
- Application of numeracy skills
- Commercial awareness
- Specialist skills