Corporate finance- Introduction
In this module, you will gain an understanding of the key components of the capital structure of a business. A range of capital structure theories are explored, including: Modigliani and Miller irrelevance theory of capital structure, the trade-off theory and the pecking order theory. The module then explores the difference sources of available to company such as debt, equity, long-term and short-term sources of finance. Subsequently, the module explains various theories of dividend such as: dividend irrelevance hypothesis, bird-in-the-hand hypothesis. Lastly, you will gain an understand of mergers and acquisitions, as well as the advantages and challenges associated with them.
The learning objectives of this module are:
To gain an understanding of the different capital structure theories
To appreciate the difference sources of finance available to companies, their advantages and disadvantages.
To gain an understanding for the different dividend theories and policies
To understand the use and motives of using mergers and acquisitions (M&A) as a way to increase firm value
To appreciate the benefits and limitations of pursuing an M&A strategy
Begin the Lecture