Corporate Finance

Aim

On completion of the course, the student should be able to: - account for financial theories and realia of the financial system, the actors and the main types of financial instruments that are used in the financial markets. - account for the time value of money, the valuation of financial assets and financial risk management.

Content

The course covers basic theory and realia about: - The financial system, its organisation and its function. - The actors, financial marketplaces and financial instruments. - The financial problems of households and businesses. - The time value of money/cash flows. - Valuation of financial assets with a focus on requirements and shares. - Risk management via portfolio diversification. - Pricing of financial instruments (CAPM). - Pricing of and risk management via futures contracts. - Pricing of and risk management via option contracts. - The company's capital structure. - The company's dividend policy.