FINANCIAL DECISION MAKING|CAPITAL STRUCTURE|CORPORATE FINANCIAL STRATEGY|FINANCIAL MEASURES|RISK

This module follows up on those studied in term 1. While the earlier modules mainly focus on the investors&#039; stance towards financial assets such as stocks,...

Corporate Financial Strategy and Capital Structure (IFTE0005)

This module follows up on those studied in term 1. While the earlier modules mainly focus on the investors' stance towards financial assets such as stocks, bonds and derivatives, here we change side and analyse how a corporate treasurer uses such instruments to fund the firm. We will tackle the important question of the optimal mix of equity and debt, i.e. the optimal capital structure of the firm.

We will consider financial operations that affect the capital structure, such as IPOs and buy-backs of stocks or bonds, dividend payments, mergers and acquisitions, leveraged buyouts, etc.

The module is designed to provide a thorough understanding of the complete corporate process; corporate financial strategies and deal assessments will therefore be an integral part of the module. Particular attention will be devoted to the analytics underlying the extraordinary operations both from a corporation, investor and investment bank (supporting the transaction) point of view.

Learning Outcomes

Demonstrate critical knowledge and understanding of the factors affecting financial decision-making and its impact on the value of the firm;
	Provide solutions to a range of complex and/or unpredictable problems, based on critical evaluation through appropriate analytical frameworks;
	Have a critical point of view on corporate financial decisions;
	Demonstrate adaptability by responding positively to change, ambiguity, and new solutions;
	Utilise creativity and lateral thinking to develop original or innovative and entrepreneurial solutions.
Reading List:

“Financial Management EMEA: Theory and Practice 2nd edition” (2018), by Eugene Brigham, Michael Ehrhardt, Roland Fox