CFM 5C /10 Introduction to Corporate Financial Management Graeme Elgin March 2010

CFM 5C /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) Staffing Lectures / Tutorials – Graeme Elgin – Room Tutorials - Tony Arkwright – Room

CFM 5C /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

CFM 5C /10 Cheese & Chocolate? On 7 th 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.”

CFM 5C /10 So what’s in it for me? Knowledge and understanding of… Key financial theories and their development Global financial markets Ability to… Apply theories to practical issues in finance Discuss and critically evaluate financial theories

CFM 5C /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

Questions??????? – Room