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