BUU33630 Corporate Finance and Equity Valuation
(5 ECTS credits) - Semester Two
Dr. Elaine Laing
How does a company make a decision to invest in a new production line? Does a firm’s corporate governance structure impact firm value? What, if any, are the ethical aspects of finance? What tools are commonly used to determine the financial health of a company? Does it matter if a company pays dividends, and if so to whom? What sorts of tools are available to tell an investor the return she should expect from a stock? What sort of risks are companies exposed to and how should they manage them? How much should a company pay for another in a merger situation?
These commonly asked financial questions form the core issues that we will address in this course. In the course we will be concerned both with the practice and theory of managerial decision making in relation to these and related questions. Much of this course is related to material that would typically be covered in the Chartered Financial Analyst examination at Level I and Level II for the corporate finance area. The CFA is a professional, graduate level, qualification. It is eminently suited to those who are interested in financial analysis, fund management, equity analysis, financial research etc. Details of the qualification and the CFA institute can be found at their website, www.cfainstitute.org. CFA candidates take three levels of examinations. The required skills etc on which they are examined are contained in the CFA Body of Knowledge. However, please note that this course is independent of and not associated with the CFA Institute.
On Successful completion of this course, students will be able to:
- Evaluate the corporate governance structure of a company
- Calculate the cost of capital and evaluate alterative capital structures for a company
- Evaluate the financial health of a company
- Evaluate dividend policies and processes
- Understand the nature and types of risk and evaluate the approaches to risk management.
- Evaluate the decision to merge or acquire a company
- Finally, as this is a non-compulsory course, an interest in the area is assumed!
Please refer to blackboard for further information on the assigned textbook and readings.
An individual assignment, 30% of the grade.
End of Year Examination, 70% of the grade.
Please refer to blackboard for further assessment information.
End of year examination x 2 hours.