Corporate finance 1

The aim of the unit is to introduce you to the theory and application of why and how value-enhancing corporate financial decisions are made and implemented. With the emphasis on publicly listed companies, topics covered include the objective of financial management, agency problems and control of the corporation; valuation of equity and debt instruments; cost of capital; issues in capital structure and dividend policy; investment evaluation methods; Valuation of alternative investment projects, leasing vs borrowing, real options, mergers and acquisitions; working capital management and ratio analysis; sources and types of funding. The unit is designed to ensure that you gain the necessary skill set for making value-changing financial decisions to maximise firm value.