Corporate Finance and Investment ECON5066
- Academic Session: 2020-21
- School: Adam Smith Business School
- Credits: 20
- Level: Level 5 (SCQF level 11)
- Typically Offered: Semester 2
- Available to Visiting Students: No
- Available to Erasmus Students: No
The course provides a graduate-level analysis of corporate finance and financial markets. It introduces students to various theories of corporate finance and shows several tests. The course shows students how the outcomes of these tests contribute to the understanding of firms' real financial decisions.
20 hours of lectures (2 hours per week for 10 weeks)
Presentation counts for 25% of the overall assessment. The final examination counts for 75% of the overall assessment and consists of a two-hour written examination.
Main Assessment In: April/May
The course aims to provide students with a sound knowledge of corporate finance theories and techniques. The course introduces students to financial markets and portfolio selection theories and then to several econometric techniques in order to test these theories. In addition, the course introduces students to various theories of credit risk management and capital structure under capital market imperfections. The course will also make students understand how companies formulate decisions regarding capital structure, dividend payout policy and mergers and acquisitions. Finally, the course will touch upon topics on financial distress during the most recent financial crisis.
Intended Learning Outcomes of Course
By the end of this course students will be able to:
1. show understanding of advanced analytical methods - both theory and model based
2. apply core corporate finance theory and quantitative methods to applied corporate finance topics
3. show understanding of dividend payout policy, mergers and acquisitions and capital structure under both perfect and imperfect capital markets
4. reason logically and work analytically
5. apply mathematical, statistical and graphical techniques in an appropriate manner
6. communicate effectively and clearly in written and oral formats in groups or individually
Minimum Requirement for Award of Credits
Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.