Dr Kim Fe Cramer

This course is compulsory on the BSc in Finance and BSc in Financial Mathematics and Statistics. This course is available on the BSc in Accounting and Finance, BSc in Actuarial Science, BSc in Data Science, BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Management, BSc in Mathematics and Economics, BSc in Mathematics with Data Science, BSc in Mathematics with Economics and BSc in Mathematics, Statistics and Business. This course is not available as an outside option nor to General Course students.

This course is not capped, any eligible student that requests a place will be given one.

Students must have completed FM214: Principles of Finance I

The course examines the theory of financial decision-making by firms and examines the behaviour of the capital markets in which these decisions are taken. The topics covered are the theory of capital budgeting under certainty in perfect and imperfect capital markets, sources of funds, basic theory of capital structure and the cost of capital, company dividend decisions and financial markets and institutions.

This course covers the same topics as FM211. Thus, both FM211 and FM215 are equivalent content-wise.  However, compared to FM211, this course puts more emphasis on the underlying statistical theory and relies more on the use of mathematical methods.

20 hours of lectures and 15 hours of classes in the WT.

Students are expected to produce written work for classes and to make positive contributions to class discussion.

Detailed course programmes and reading lists are distributed at the start of the course. Illustrative texts include: Principles of Corporate Finance by Richard Brealey, Stewart Myers, and Franklin Allen, McGraw-Hill Inc.

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