CO5809 - Corporate Finance

This MBA Global subject provides learning opportunities that foster basic concepts of finance; establishes a "finance mind-set" with value creation as a central concept for financial planning and decision-making in a complex world. Financial markets are places where investors (suppliers of capital) and firms (consumers of capital) meet and trade. The first part of this subject examines the theories and techniques that both investors and firms use to deal with cash flows that occur at different points in time; we look at valuation problems across several types of capital markets. The second part of this subject introduces the concept of uncertainty and theories of risk that are central to an understanding of finance. It introduces a measure of risk and develops a model of how this risk measure corresponds to a level of expected return on an asset or project. We integrate this model of risk and return with the valuation of cash flows through time and consider the evidence on how prices in financial markets are related to value. Finally, we introduce options, discuss how they are valued, and consider applications of option valuation.

Learning Outcomes

• identify and differentiate the financial dimensions of business decision making;
• critically analyse and apply theoretical finance concepts to business;
• evaluate and apply finance concepts for value creation in corporate planning and decision making.

Subject Assessment

• Written > Test/Quiz 1 - (5%) - Individual
• Written > Project report - (25%) - Individual
• Written > Research report - (50%) - Individual
• Written > Test/Quiz 2 - (20%) - Individual.

Note: Minor variations might occur due to the continuous Subject quality improvement process, and in case of minor variation(s) in assessment details, the Subject Outline represents the latest official information.