Prof Daniel Paravisini Maggi

This course is available on the CEMS Exchange, IMEX Exchange, MSc in Accounting and Finance, MSc in Law and Accounting, MSc in Management, MSc in Management (CEMS MIM), MSc in Management (MiM Exchange), MSc in Management and Strategy, MSc in Risk and Finance and MiM Exchange. This course is available 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 9 hours 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.

Please note this exam is the half unit version of the examination taken on FM430 Corporate Finance and Asset Markets. Any student who takes both FM429 and FM431 will be re-registered to sit the FM430 full-unit exam paper in Summer Term.