Corporate Finance
Module code: EC3058
How do companies choose their investments? How are these investments financed? Should companies use debt or equity? Should they reinvest their earnings or distribute them as dividends? How much cash should companies hold? Are leveraged buyouts good for society? Why do some firms go public while others choose to stay private? Corporate Finance is the field of finance that studies financial decisions by corporations. In this module, we will shed lights on how corporations approach a number of financial problems.
You will analyse the decisions faced by the corporation in an ideal world with perfect capital markets and look at how the problems change in a more realistic world plagued by financial frictions. You will also zoom in on a few specialist topics such as Leveraged BuyOuts and Initial Public Offerings.
Key topics:
- Investment and capital budgeting
- Capital budgeting under risk and cost of capital
- Capital structure
- Information frictions
- Corporate governance
- Capital structure under asymmetric info
- Private equity and LBOs
- IPOs