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CFM 5C3080 2009/10
Introduction to Corporate Financial Management
Graeme ElginMarch 2010
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CFM 5C3080 2009/10
Course Structure Delivery Modes
Lectures
Tutorials
WebCT
Modes of Assessment
1. Case Study / Assignment
(40% of total unit mark)
2. Final Examination
(60% of total unit mark)
StaffingLectures / Tutorials – Graeme ElginE-mail – [email protected] 421 0161- 247- 3766
Tutorials - Tony ArkwrightE-mail – [email protected] 423 0161-247- 3761
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CFM 5C3080 2009/10
What is Corporate Finance?“The activities involved in managing
money in a business environment” (2008) Megginson, W. , Smart, S. , & Lucey, B.
• Managing money involves making decisions…..
• 1. The Investment Decision
• 2. The Financing Decision
• 3. The Dividend Decision
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CFM 5C3080 2009/10
Cheese & Chocolate?
• On 7th September 2009 Kraft Foods, a US multinational food and beverage company made a £10.2 billion takeover bid for Cadbury plc.
• Cadbury plc rejected the bid on the basis “…that the proposal fundamentally undervalues the Group and its
prospects.”
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CFM 5C3080 2009/10
So what’s in it for me?
• Knowledge and understanding of… Key financial theories and their
developmentGlobal financial markets• Ability to… Apply theories to practical issues in
finance Discuss and critically evaluate financial
theories
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CFM 5C3080 2009/10
Specific Study areas Time value of money Sources of finance Risk & Return Portfolio Theory Capital Asset Pricing Model Dividend Policy Capital Structure Cost of Capital Valuation of financial instruments Company Valuation Net Present Value Analysis Dividend Policy Options