Dr Maria-Theresa Marchica

This course is available on the CEMS Exchange, Global MSc in Management, Global MSc in Management (CEMS MIM), Global MSc in Management (MBA Exchange), MBA Exchange, MSc in Accounting and Finance, MSc in Management and Strategy and MSc in Risk and Finance. This course is available as an outside option to students on other programmes where regulations permit.

Outside students should consider taking FM474 Managerial Finance as an alternative option. This course cannot be combined with FM430 Corporate Finance and Asset Markets.

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 Managerial Finance.

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: decision to go public, mergers and acquisitions and start-up finance (time permitting).

20 hours of lectures and 9 hours of seminars in the LT.

Students will be set  weekly problem set assignments. Solutions and guidance will be provided during the weekly seminar classes. The final seminar class, students will solve a formative mock exam. Students will receive individual feedback on the mock exam prior to the final exam.

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.