This course provides a broad introduction to the key issues in understanding corporate financial policy. In particular, we will investigate how companies should finance their activities by issuing securities (debt, equity and convertible claims) and the interaction of business policy with corporate financial policy. Special consideration is given to the tax implications, the possible costs of financial distress, the incentive implications of financial decisions and the signalling impact of those for financial market participants. A final part of the course covers some specific topics in corporate finance: dividend policy, the decision to go public, mergers and acquisitions and possibly corporate governance issues.
This course, combined with ECOM105 which explores both the theoretical basis and practical application of valuation concepts and techniques, provides a broad introduction to corporate finance, namely financing (ECOM015) and valuation (ECOM105).