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 revisit traditional tools developed under the simplifying assumption of perfect capital markets and then we will see how things change in the presence of financial frictions.