Essex Business School
Autumn & Spring
Undergraduate: Level 5
Thursday 03 October 2019
Friday 20 March 2020
01 July 2019
Requisites for this module
BE329, BE331, BE332, BE335, BE630, BE937
BSC N400JS Accounting,
BSC N420JS Accounting and Finance,
BSC N390JS Banking and Finance
The purpose of this module is to provide an introduction to corporate financial decision making. The focus is on the two major types of corporate decisions: investment decisions (spending capital) and financing decisions (raising capital). We will also present the fundamental theory of payout policy and capital structure, and introduce option pricing theory as a tool for valuing corporate flexibility. Finally, we review some smaller topics: debt financing, risk management, working capital management, and corporate restructuring.
The module aims to give the students an introduction to the main concepts associated with corporate financial decision making.
On successful completion of the module, students will be able to:
1. Understand the concepts of value, net present value, and risk, and how to apply these in financial decision making
2. Understand the process of capital budgeting and the concept of efficient markets
3. Understand the fundamental principles of capital structure and payout policy
4. Understand the fundamental principles of option pricing theory and how to apply these in financial decision making
Skills for Your Professional Life (Transferable Skills)
The students will learn communication skills. Additionally, the students will learn structured problem solving – how to structure a problem and break it down into manageable smaller bits.
EBS Student Services
1. There will be a double lecture weeks 1 – 6 and 8 – 10.
2. There will be a single tutorial for all students weeks 1 – 10.
3. There will be a fortnightly class for students in smaller groups run by GTAs. You will be informed of which group you belong to and what the dates are for your classes.
This module does not appear to have any essential texts. To see non-essential items, please refer to the module's reading list.
Module supervisor and teaching staff
Dr Norvald Instefjord
Tel: (01206) 874160
No external examiner information available for this module.
Available via Moodle
No lecture recording information available for this module.
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