An Assignment 2000 words maximum, based on a case study. For a Pass mark, the Examiners will expect you to present a report using appropriate methods and techniques and some analysis of the results obtained. For a Distinction mark, the Examiners would expect all of the above plus a clear demonstration of understanding of methods (etc) used and a suitable argument for favouring and/or excluding certain other methods/techniques. In addition, the Examiners would expect some innovative individual approach in the critical analysis and evaluation of methods and techniques used.

Whenever a firm makes an investment in either plant machinery or new practices it does so without full knowledge of future events. This situation will be analysed. Various aspects and concepts will be developed which either address necessary complications or help to assess/reduce the risk involved. Topics include portfolio theory, dividend policy, the sources of capital and their cost. This latter aspect is necessary affected by the market for finance, and various models which help to explain its working, will also be considered (eg, CAPM, Efficient Markets) along with company evaluation. The implication of company restructuring will considered at the end.

The module consists of lectures to introduce the material and explanations of difficult problems. There will be workshop sessions examining applications. Students will spend 7 hours per week on independent study of the material.

Text books, journals, On-line database and internet.

Pike, R. and B. Neal. (2004). Corporate Finance and Investments: Decisions and Management, Prentice Hall & Woodhead Faulkner
McLaney, E.J. (2003). Business Finance: Theory & Practice, Pitman Publicity