Aims and Fit of Module

This module introduces students to the major topical areas of corporate finance, including the basic concepts and principles, the basic analytical tools, risks and returns, capital structures, and M&As in a more advanced level. Particularly, this module focuses on risk and return, short-term and long-term financing and capital structure.
Students will be encouraged to apply the basic concepts/principles and analytical tools to solve financing problems.

Learning outcomes

A. Understand the basic concepts and principles of corporate finance;

B. Apply and analyze various risk measures and models of the relation between risk and return;

C. Critically evaluate firms’ long-term and short-term financing plans;

D. Discuss firms’ choice of capital structure and implications for the value of the firm;

E. Understand and evaluate firm’s M&As activates and corporate finance decisions in the international context.

Method of teaching and learning

Lectures: Student will be exposed to theoretical knowledge and corresponding real-life examples of corporate finance during lectures. Tutorials: In addition to lectures, students will also take part in guided independent study, which will be discussed in tutorials. In these sessions, students will be asked to reflect on the theory learnt in lectures and apply their knowledge to practical cases.