Also refer to the MCom + MIB Student Guide

Description

The objective of this unit is to give the student an opportunity to acquire a high level of ability in the application and analysis of corporate finance issues. The course will be demanding, as students will be expected to understand the theoretical and the practical aspects of corporate finance at a professional level. At the end of the course, the students will apply their knowledge to real life corporate financial issues by completing a group project.

The unit will begin with the revision of basic financial concepts, various valuation methods, risk and return, investment decisions and capital budgeting problems students have previously learned in their first finance course. More complicated theoretical issues and analytical techniques such as sensitivity analysis, Monte Carlo, decision trees, real options will follow, leading to the completion of a practical project.

Topics

• Revision of basic financial concepts
• Revision of investment decision concepts
• Capital Budgeting
• Sensitivity Analysis, Monte Carlo, Decision Trees
• Dividend Policy
• Debt Policy
• Interactions between debt and investments
• Options
• Valuing risky debt
• Takeovers