Course overview
This course examines firm investment and distribution decisions in the context of a capital market structure and efficiency. Valuation methods are developed for valuing projects and securities. Basic portfolio theory is discussed to develop simple asset pricing models and used for determining the cost of capital for use in investment evaluation. The implications of different financing options (debt and equity) are considered and elementary capital structure theorems are presented, in relation to which the dividend decisions are analysed. The question of market efficiency is considered and its implications for trading strategies are discussed.
- Finance And Financial Markets
- Understanding Risk
- Capital Budgeting
Course learning outcomes
- Compute complex time value of money calculations
- Value both bonds and equities using appropriate financial models
- Illustrate basic risk and return calculations
- Apply the core concepts of financial management for basic project valuation
- Analyse the capital structure of a company
- Identify ethical behaviour in the context of financial management and financial planning
Degree list
The following degrees include this course