BUSN3049 Corporate Finance

This topic is concerned with the theory and practice of financial management of business corporations. The concepts and issues introduced in BUSN2037 Financial Management will be extended to consider investment, financing and valuation decisions of the firm at a more advanced level, and also interactions between these decisions. A number of more applied topics will also be covered including real options, corporate acquisitions, corporate restructuring, and corporate governance.

This topic aims to:

• Introduce students to the important theoretical foundations and principles that underpin modern corporate finance practice
• Develop an understanding of the relationship between corporate finance theory and practice and effective and responsible governance, decision making and business objectives

1. Identify and evaluate the role of risk in determining project cost of capital
2. Evaluate investment decisions under uncertainty using a range of evaluation methods such as sensitivity analysis and decision trees analysis
3. Apply real options analysis and credit risk analysis
4. Describe and apply the main techniques for risk management using financial instruments
5. Describe the theories and applications surrounding a merger or a takeover and the similarities and differences
6. Identify the various types of corporate restructuring transactions
7. Explain the significance of agency problems and corporate governance and contrast different corporate governance regimes around the world