The purpose of this module is to provide an introduction to corporate financial decision making. The focus is on the two major types of corporate decisions: investment decisions (spending capital) and financing decisions (raising capital). We will also present the fundamental theory of payout policy and capital structure, and introduce option pricing theory as a tool for valuing corporate flexibility. Finally, we review some smaller topics: debt financing, risk management, working capital management, and corporate restructuring.
Module Aims
The module aims to give the students an introduction to the main concepts associated with corporate financial decision making.
Learning Outcomes
On successful completion of the module, students will be able to:
1. Understand the concepts of value, net present value, and risk, and how to apply these in financial decision making
2. Understand the process of capital budgeting and the concept of efficient markets
3. Understand the fundamental principles of capital structure and payout policy
4. Understand the fundamental principles of option pricing theory and how to apply these in financial decision making
Skills for Your Professional Life (Transferable Skills)
The students will learn communication skills. Additionally, the students will learn structured problem solving – how to structure a problem and break it down into manageable smaller bits.
Module Aims
The module aims to give the students an introduction to the main concepts associated with corporate financial decision making.
Learning Outcomes
On successful completion of the module, students will be able to:
1. Understand the concepts of value, net present value, and risk, and how to apply these in financial decision making
2. Understand the process of capital budgeting and the concept of efficient markets
3. Understand the fundamental principles of capital structure and payout policy
4. Understand the fundamental principles of option pricing theory and how to apply these in financial decision making
Skills for Your Professional Life (Transferable Skills)
The students will learn communication skills. Additionally, the students will learn structured problem solving – how to structure a problem and break it down into manageable smaller bits.