Dr Juanita Gonzalez-Uribe OLD M3.11

This course is compulsory on the MSc in Economics and Management. This course is available on the MSc in Accounting and Finance, MSc in Economics, MSc in Economics (2 Year Programme), MSc in Economics (Research), MSc in Management and Regulation of Risk, MSc in Management and Strategy and MSc in Risk and Finance. This course is available with permission as an outside option to students on other programmes where regulations permit.

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.

This course cannot be combined with FM430 Corporate Finance and Asset Markets or FM474 Finance II

The course covers range of topics in corporate finance starting with capital budgeting techniques, in relation to CAPM and other valuation instruments. The course then proceeds identifying 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. A final part of the course covers some specific topics in corporate finance: dividend policy, decision to go public, mergers and acquisitions and possibly (time permitting) corporate governance issues.

20 hours of lectures and 8 hours of seminars in the MT. 1 hour of seminars in the LT.

At least two pieces of formative work will be assessed over the duration of the course. Students will be set will be set weekly problem set assignments, of which a minimum of two will be submitted and marked as formative assessment.

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.

Exam (100%, duration: 1 hour and 30 minutes) in the main exam period.