Module Identifier |
AC30520 |
Module Title |
CORPORATE FINANCE |
Academic Year |
2001/2002 |
Co-ordinator |
Mr Richard Jackson |
Semester |
Semester 2 |
Other staff |
Dr Jihe Song |
Pre-Requisite |
AC30420 |
Course delivery |
Lecture | 18 Hours |
|
Tutorial | 5 Hours hours |
Assessment |
Case study | | 20% |
|
Exam | 2 Hours | 80% |
Brief description
This module is designed to provide a thorough treatment of the key financial decisions which are faced by the directors and managers of firms.
Objectives
This module will provide a detailed treatment of the following issues, as faced by the directors and mangers of firms:
-
capital structure
-
dividend policy
-
leasing (versus purchase) policy
This will be approached by consideration of context in which decisions upon these issues are made; presentation and anlysis of the debates which have surrounded (and continue to surround) them; recourse to the associated theoretic and empirial academic literature; and destruction of the idea of a set of discrete, simple solutions.
Learning outcomes
Having completed the module, students will be able to:
-
describe and explain the issues of capital structure, dividend policy and leasing versus purchase policy (and associated matters)
-
describe, derive, interpret and apply models which have been proposed to illuminate these issues
-
solve related numerical problems
-
describe, explain and illustrate the evolution of the debate upon these issues
-
compare and contrast differing opinions and positions in these debates
-
assess and criticise the models
-
relate key financial issues one to another, to associated theory and to the preferences and expectations of key stakeholders
-
select, explain and apply appropriate theory to questions and problems
Outline syllabus
-
introduction to corporate finance (including agency and signalling theories)
-
relevant aspects of corporate taxation
-
capital structure
-
dividend policy
-
leasing policy
-
capital markets
Reading Lists
Books
** Recommended Text
Brealey, R.A. and Myers, S.C..
Principles of Corporate Finance. 6th. McGraw Hill
Ross, S.A., Westerfield, R.W. and Jaffe, J..
Corporate Finance (International Edition, Revised Printing). 6th. McGraw Hill
** Supplementary Text
Emery, D.R. and Finnerty, J.D.. (1997)
Corporate Financial Management. Internat.. Prentice Hall