Corporate Financial Management (LI)

Accounting and Finance, Business School

College of Social Sciences


Code 12401

Level of study Second Year

Credit value 10

Semester 1

Pre-requisite modules Introduction to Management Accounting - 03037

Module description

This module aims to: build upon the material covered in Elementary Managerial Finance (Year 1), and provide a smooth transition to Advanced Finance (Year 3); provide a thorough grounding in the analytical tools for corporate financial management, focussing on the key investment and financing decisions of modern corporate; enable students to develop a critical approach to recent developments in finance theory and their applications to corporate financing and investment management; blend theoretical and practical issues in corporate finance
By the end of the module the student will be able to: demonstrate the application of investment appraisal techniques within the framework of overall capital budgeting, and explain the advantages and disadvantages of the discounted cash flow techniques; describe the relationship between portfolio theory and efficient markets; demonstrate the techniques available to apply such models as the capital asset pricing model (CAPM) to evaluating capital investment decisions which incorporate risk; estimate the cost of equity, cost of debt and overall weighted average cost of capital for a UK Plc; critically appraise the major models proposed to explain corporate capital structure, , merger and acquisition and dividend policies and practices.

Teaching and learning methods

11 x 2 hour lectures, + 1 x class per fortnight