Year:11/12
Department:Accounting and Finance
Level:Part II (final year)
Learning Hours:150
Credit Points:15
Weight:0.5
Course Convenor:Dr LH Hass
Status:Live
Syllabus Rules
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The student must take 1 modules from the following group:
Assessment Rules
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- 75% Exam
- 25% Coursework
- 0% No formal assessment, Optional
CMod description
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This seminar-based course examines in depth the financing
decisions of corporations, developing the finance concepts introduced in the
second year programme.
Curriculum Design: Outline Syllabus
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|
Lecture no and date |
Topic |
|
Lecture 1 and 2
|
Financing Decisions and Efficient Markets.
Types of Long-Term Financing |
|
Lecture 3 and 4
|
Capital Structure |
|
Lecture 5 and 6
|
Limits to the Use of Debt |
|
Lecture 7 and 8
|
Valuation and Capital Budgeting for the Levered Firm |
|
Lecture 9 and 10
|
Equity Financing and short term financing |
|
Lecture 11 and 12
|
Debt Financing and Leasing |
|
Lecture 13
|
Corporate payout policy |
|
Lecture 14 and 16
|
Options
Extensions and Applications of options
Warrants and convertibles
|
|
Lecture 17 and 18
|
Corporate Risk Management |
|
Lecture 19 and 20
|
Summary and Revision |
Educational Aims: Subject Specific: Knowledge, Understanding and Skills
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The core objectives of AcF 302 are:
- To deepen the understanding of traditional corporate finance paradigms.
- To extend the Modigliani and Miller theory of capital structure by incorporating taxes and bankruptcy costs.
- To provide an overview of more applied topics in corporate finance, such as leasing, issuing new securities, and corporate payout policy.
- To show how option pricing models can be applied to a number of corporate finance problems.
- To address fundamental aspects of corporate risk management.
Learning Outcomes: Subject Specific: Knowledge, Understanding and Skills
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By the end of the course, students should:
- be familiar with the conflicting objectives affecting capital structure decisions,
- have an understanding of the various financing instruments available to firms,
- be able to value new investment projects under leverage,
- be able to identify option features in corporate decisions and value these options.
