香港六合彩

This module builds on those studied in term 1, notably Asset Pricing (IFTE0009) and, to some degree, also Introduction to Banking (IFTE0001). While the Asset Pricing module focusses on the investors' stance towards financial assets such as stocks, bonds and derivatives, here we change sides and analyse how a corporate treasurer uses such instruments to fund the firm.

We will tackle the important question of the best mix of equity and debt, i.e., the optimal capital structure of the firm. Financial institutions such as banks and insurance companies must meet regulatory requirements regarding minimum equity capital; we address this.

We emphasise on the differences between equity and debt and hybrid instruments, such as warrants, convertibles, preference equity, subordinated debt. We also analyse how specific aspects of debt (collateralisation, maturity, callability, currency, fixed or variable rate, etc.) can be used to fund the corporate.

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 process of financing a corporation. 听Particular attention will be devoted to the analytics underlying the financial operations both from a corporation, investor and investment bank (supporting the transaction) point of view.

Please note, this module is usually taught in a multiple day, intensive format.听

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:

• 鈥淔inancial Management EMEA: Theory and Practice 2nd edition鈥� (2018), by Eugene Brigham, Michael Ehrhardt, Roland Fox

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