Corporate finance

We study how companies invest and how they raise funds in the financial markets to pay for these investments.

You will cover the principles of financial management and techniques to evaluate different investment projects and alternative sources of funds.

We also study the major sources of corporate financing, mergers, dividend policy, etc.

Likely topics:  

• investment decisions and techniques for capital budgeting
• measures of risk and mean‐variance analysis 
• capital asset pricing model (CAPM) and arbitrage pricing theory (APT) 
• capital structure and the cost of capital
• Debt, equity and the Modigliani and Miller approach: dividend policy

Theory and empirical evidence:

•  problems of asymmetric information: ownership and control
•  signalling theory: capital structure and dividend policy
•  mergers and corporate control.