Advanced Corporate Finance (BS3381) complete notes

Advanced Corporate Finance (BS3381) Complete Notes – Aston University provides a comprehensive 55-page guide meticulously tailored for students aiming to excel in corporate finance. These notes, which helped secure a Grade A, cover crucial topics and strategic decisions that corporations face, particularly focusing on capital structure, dividend policy, and mergers and acquisitions.

Module Overview:

This module delves into the complex decision-making processes surrounding corporate finance strategies, with a special emphasis on addressing the challenges firms encounter when choosing capital structures, setting dividend policies, and engaging in mergers and acquisitions. It equips students with the theoretical knowledge and practical skills necessary to navigate the financial landscape of contemporary businesses effectively.

Learning Outcomes:

Upon completion of this module, students will have developed a robust capability to:

1. Solve Capital Budgeting Problems: Students will understand various capital budgeting techniques, including NPV, IRR, and payback period methods, to evaluate potential investment opportunities effectively and make informed financial decisions.
2. Analyse Capital Structure Choices: The notes provide a deep dive into the factors influencing a firm’s choice of capital structure, discussing theories such as the Modigliani-Miller theorem, trade-off theory, and pecking order theory. Students will learn to critically assess how these choices impact a firm’s financial strategy and the feasibility of maintaining an optimal capital structure.
3. Evaluate Payout Policies: Students will explore different dividend policies and their implications for firm value. This includes understanding the signaling effects of dividend changes, the sustainability of dividend payments, and how these policies reflect the company’s financial health and management’s outlook.
4. Identify Financial Problems in Mergers and Acquisitions: The notes address the financial, regulatory, and operational challenges associated with mergers and acquisitions. This includes due diligence processes, valuation techniques, and the strategic fit between acquiring and target companies. Students will learn to identify potential synergies and pitfalls in M&A activities.

These detailed notes from the Advanced Corporate Finance course at Aston University are indispensable for any finance student. They not only prepare learners for academic success but also provide practical insights applicable in real-world finance roles such as financial analysts, corporate finance consultants, and strategic decision-makers within corporations.