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Unit information: Corporate Finance and Financial Statements in 2012/13

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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 Professor. Hill
Open unit status Not open




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

Description including Unit Aims

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.