1. Introduction to Corporate Financial Management Graeme Elgin CFM 5C3250 2012/13

2. Course Structure Delivery Modes  Lectures  Tutorials  Moodle  Livescribe 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 E-mail – g.elgin@mmu.ac.ukg.elgin@mmu.ac.uk Room 4.38 0161- 247- 3766

3. CFM 5C3250 2012/13 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

4. CFM 5C3250 2012/13 Typical Coursework Scenario 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.” In your role as Finance Director of Cadbury plc produce a company valuation to assist the board with its defence of the bid

5. CFM 5C3250 2012/13 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

6. CFM 5C3250 2012/13 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

7. Questions??????? E-mail – g.elgin@mmu.ac.uk Room 4.38 0161- 247- 3766 CFM 5C3250 2012/13