CFM 5C3080 2009/10

Introduction to Corporate Financial Management

Graeme ElginMarch 2010

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 – g.elgin@mmu.ac.ukRoom 421 0161- 247- 3766

Tutorials - Tony ArkwrightE-mail – a.arkwright@mmu.ac.ukRoom 423 0161-247- 3761

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

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.”

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

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

Questions???????

• E-mail – g.elgin@mmu.ac.uk

• Room 421

• 0161- 247- 3766