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Unit information: Corporate Finance and Financial Statements in 2015/16

Please note: you are viewing unit and programme information for a past academic year. Please see the current academic year for up to date information.

Unit name Corporate Finance and Financial Statements
Unit code ECONM2034
Credit points 15
Level of study M/7
Teaching block(s) Teaching Block 1 (weeks 1 - 12)
Unit director Dr. Xu
Open unit status Not open
Pre-requisites

None

Co-requisites

None

School/department School of Economics, Finance and Management
Faculty Faculty of Social Sciences and Law

Description

Corporate finance deals with the decisions firms make regarding raising funds from capital markets and distributing profits to the stakeholders of the firm. This unit provides an introduction to the theory and practice of corporate finance. The unit begins with an exposition of the various instruments firms use to raise capital and the organisation of the markets in which these securities are traded. How financing and expenditure decisions are reflected in financial statements is then treated. Next the unit aims to provide a rigorous grounding in the theory of corporate finance, focussing on the capital structure decision (i.e. whether to raise money using equity or debt) and on the theory of distribution to stakeholders (i.e. whether to pay dividends, how much to pay out as dividends, whether to distribute by repurchasing stock). Finally, some more advanced theoretical topics are treated.

Intended learning outcomes

Having successfully completed this unit students should be able to - Discuss the structure of the basic financial statements and how firms' financing and payout decisions are reflected in these statements.

Teaching details

Financial Accounting: 10 contact hours (8 hours of lectures and 2 hours of classes).

Assessment Details

The unit is assessed via a three-hour examination in January.

Reading and References

Hillier, D., Grinblatt, M., and Titman, S. (2012), Financial Markets and Corporate Strategy, Second European Edition, McGraw-Hill.

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