UNIVERSITY OF WARWICK 
Department: Warwick Business School 
IB254: Principles of Finance 2 
Final Examination Guide and Notes 2025 
 
Part 01: About This Guide 
Part 02: Sample Final Examination Paper 
Part 03: Suggested Solutions to Final Exam Paper 
Part 04: Final Examination - Hints and Tips 
 
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University of Warwick - Principles of Finance 2 (IB254)

£35.00

ACADEMIC YEAR 2024 - 2025

University	University of Warwick
Level	Undergraduate Level 2
Module Code	IB254
Credit Value	15
Module Name	Principles of Finance 2
Notes Title	Final Examination Guide and Notes
Page Length	35

A comprehensive, easy-to-understand set of notes covering all examinable topics for IB254: Principles of Finance 2 at the University of Warwick. These notes provide essential information on the exam format, the topics included, and the key concepts to prioritise in your studies. The guide is designed to offer a clear structure for the module’s key topics, emphasise and explain critical concepts and methods within each area, and present introductory examples demonstrating their application. With this guide, you'll build a solid understanding of the module material, ensuring you feel confident and well-prepared to excel in the final exam.

IB254: Principles of Finance 2 covers key Corporate Finance topics such as capital budgeting, equity valuation, and the cost of capital, with advanced concepts like real options, capital structure, and payout policy. The module also explores mergers and acquisitions, IPOs, and risky debt valuation. Through practical applications, students will develop skills in analysing shareholder ratios, estimating share prices using discounted cash flow methods, and understanding corporate financial decisions. By the end of the module, students will be able to compute the cost of capital, evaluate financial strategies, and interpret empirical evidence, preparing them for advanced finance studies or professional roles in corporate financial management.

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University of Warwick - Principles of Finance 2 (IB254)

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