Principles of Corporate Finance & Derivative Securities - ECO00012H
- Department: Economics and Related Studies
- Credit value: 20 credits
- Credit level: H
- Academic year of delivery: 2022-23
Module summary
To describe the theory and practice of corporate finance. Throughout this module we will show how to use financial theory to solve practical problems and also to illuminate the institutional material that students of business finance must absorb.
Related modules
Module will run
| Occurrence | Teaching period |
|---|---|
| A | Autumn Term 2022-23 to Summer Term 2022-23 |
Module aims
- To describe the theory and practice of corporate finance. Throughout this module we will show how to use financial theory to solve practical problems and also to illuminate the institutional material that students of business finance must absorb
- To enumerate and describe the various securities and markets in a clear and concise manner that accurately blends theory and practice
Module learning outcomes
The objective of this module is to provide an advanced analysis of the major issues affecting the financial policy of a modern corporation:
- The first part of the course (Autumn Term) will examine the fundamentals of corporate finance: the theory of the firms choice of its capital structure and dividend policy under alternative assumptions
- The second part of the course (Spring Term) will focus on the valuation of financial instruments such as options, futures and other derivatives. This part of the course provides an introduction to the valuation of derivative securities. The structure and properties of common derivatives such as forward contracts, futures contracts and options will be discussed. Valuation methods will be developed and applied to different contracts of interest. Hedging policies and risk management aspects will be addressed
Indicative assessment
| Task | % of module mark |
|---|---|
| Online Exam -less than 24hrs (Centrally scheduled) | 100 |
Special assessment rules
None
Indicative reassessment
| Task | % of module mark |
|---|---|
| Online Exam -less than 24hrs (Centrally scheduled) | 100 |
Module feedback
Feedback will be returned to students according to University guidelines.
Indicative reading
Bodie, Z., Kane, A. and Marcus, J. M. Investments. McGraw Hill Irwin.
Brealey, R A. & Myers, S C. Principles of Corporate Finance. McGraw Hill.
Hull, J C. Options, Futures and other Derivatives. Prentice Hall.
Ross, S A., Westerfield, R W. and Jaffe, R W J. Corporate Finance. McGraw Hill Irwin.
Berk and DeMarzo. Corporate Finance. Pearson, Global Edition.