This module examines firms' investment and financial decisions. The economics of corporate finance studies these decisions in the light of incentives, information and institutions. The module introduces students to major themes in modern corporate finance and aims at: developing appreciation of its applications to a range of problems and contexts, and equipping students with appropriate tools of analysis to tackle issues and solve problems of corporate finance. Topics covered include: economics of corporate finance, financing decisions and market efficiency, Modigliani-Miller's capital structure irrelevance.
Learning Outcomes
By the end of the module students should be able to:
demonstrate knowledge of the modern theories of corporate finance;
analyse optimal financial policy on a firm level;
demonstrate knowledge and critical understanding of how the actual financial decisions of firms may be explained in theoretical terms;
demonstrate communication skills and the abilities to collaborate and work in a team effectively.