AFC9230

Advanced corporate finance

Mr Peter Howard and Dr Adam Steen

One 3-hour session per week · First semester · Clayton · Prerequisites: AFC9020

Objectives On completion of this subject students should understand the main issues involved in the corporate dividend and capital structure decisions; be familiar with the analysis of financial leases; understand the characteristics, uses and pricing of futures contracts and options; understand the motives for takeovers and corporate restructuring transactions and be aware of the empirical evidence on their effects; be able to solve capital budgeting problems under alternative corporate tax systems.

Synopsis This subject uses and extends the theories and analytical tools developed in AFC9020. Topics to be examined include capital structure (theory and evidence), leasing, dividend policy, mergers and takeovers (including empirical evidence, legal aspects, valuation and financing), derivative securities (options and futures), capital budgeting under the imputation tax system.
Assessment Written (2000 words): 20% · Examination (3 hours): 80%

Prescribed texts

Brealey R and Myers S Principles of corporate finance 5th edn, McGraw-Hill, 1996

Back to the 1999 Business and Economics Handbook