Corporate Financial Management

Where does financial management sit within the overall area of corporate governance? This module will help you understand, among other things, the theoretical and practical considerations underlying the financing decisions of a company. Learn to analyse whether or not a capital project adds value to a business, and how to evaluate techniques of financial planning – including working capital management and risk management.

What does the module cover?

In the context of today’s global financial environment, you’ll explore the main decision areas in corporate finance, and learn to apply and evaluate investment appraisal techniques to a range of investment scenarios involving risk and uncertainty.  Through relevant literature research, you’ll examine the theoretical and practical justifications and ramifications of the various techniques available to a company to increase shareholder value.  What’s more you’ll develop effective communication skills with practical group work discussion of case studies drawing on your critical thinking abilities and independent judgement.

More Information

Module Code:

FE3002

Key topics

• The nature and objective of financial decision making, agency problems and shareholder wealth maximisation
• The traditional and discounted cash flow approaches to capital budgeting
• Risk management in investment appraisal
• Major sources of capital, cost of the sources and weighted average cost of capital
• Portfolio risk and return, market portfolio and optimum diversification
• Capital asset pricing model and arbitrage pricing theory
• Valuation of options, the Black and Scholes model, put-call parity and uses of share options
• Capital structure and value of the company, real world considerations and empirical evidence
• The dividend controversy, possible dividend policies and practical influences on dividend payout decision
• Motives for mergers and acquisitions, settlement methods and terms, defence strategies and tactics and reasons for failure of mergers
• Financial planning and working capital cycle, cash management and the treasury function

Pre-requisites

FE2028

Number of credits & study time

20 credits / 200 hours

Assessment

In addition to completing a number of formative assessments as part of your coursework, you’ll need to successfully complete a summative assessment which comes in two parts – a group management report based on a case study, plus a 2-hour unseen exam, each counting towards 50% of your final grade.