University of Greenwich - FINA1129: Corporate Financial Management

This course is intended for students who require an intermediate knowledge of the financial aspects of business management. Students will apply financial concepts and theories to finance-related issues encountered by firms, focusing upon the role of the Financial Manager and the theory and skills required to make sound investment and financing decisions. The key topics to be delivered include the tenets of Modern Portfolio Theory, developing from the concept of efficient markets through to the ability to identify and calculate bespoke risk adjusted weighted average cost of capital. Students will grasp the financial relevance of cost of capital within the context of business project evaluation. The course deals with the theory and techniques of financial decision-making in a corporate context. Students will gain an understanding of why maximising shareholders wealth is regarded as a primary financial objective of a firm. In addition, students will develop their comprehension of the following key financial decisions - investment, financing, dividends and risk management - as paramount to creating wealth. The course will, additionally, focus upon a specific topical financial issue, for example, a recent liquidation or a macroeconomic event which has impacted upon business finance; students will be expected to study this topic in depth and deliver an extended essay, to include, for example, evidence of forecasting or scenario analysis ability.

Indicative Content:

• Financial objectives / value creation
• Discounted cash flow techniques to include risk adjusted future estimation
• Capital markets and efficiency
• Financing decisions (Equity & Debt)
• Weighted Average Cost of Capital - WACC
• Capital structure
• Dividend policy
• Portfolio theory and Capital Asset Pricing model
• Risk management
• Working capital management
• Business valuation