MGT6188   Corporate Finance   (10 credits)

Description

This module focuses on the principles underlying financial decision making in the context of manufacturing organizations. Concerning investment decisions, the module reviews the determination of the cost of capital under uncertainty based on the Capital Asset Pricing Model (CAPM). In terms of financing decisions for a manufacturing organization, the link between shareholder value and financing choices (debt versus equity financing) and dividend policy is examined. The motives behind mergers and acquisitions and the psychological effects that systematically bias investor behaviour and therefore cause persistent mis-pricings are also discussed.

Reading List