Content

Term 1: Financial Accounting and Analysis

In term 1, you learn to assess the performance of a company by undertaking a careful analysis of its financial statements.

Key topics covered:

• financial statements and accounting standards
• modern financial analysis techniques
• revenue recognition and expense matching
• assets and liabilities recognition.

You discuss the structure of financial statements and the main accounting standards. You then use modern financial analysis techniques to assess a company's performance, while controlling for certain accounting limitations (e.g. company or country-specific practices). You also study governance issues (e.g. Enron, Parmalat, Worldcom), key regulatory frameworks (e.g. Sarbanes Oxley, Basel II) and  understand their impact on financial statements.
 

Term 2: Corporate Finance and Valuation

Valuation exercises are pervasive in business decisions, form capital budgeting to M&A decisions and value-based compensation. This term equips you with the modern valuation tools required to appraise financial decisions and evaluate companies.

Key topics covered:

• valuation using discounted cash flow analysis
• capital markets and cost of capital
• investment appraisal
• company valuation
• valuation using and multiples.

You will learn how to apply discounted cash flow analysis to evaluate investment proposals. A key element is the measurement of risk and cost of capital. You will apply the method to the valuation of companies, along with other valuation tools, such as multiples. Throughout the programme, you will use these skills to work in groups on a company valuation project.

Term 3: Corporate Financing and Risk Management Policy

Businesses have access to an ever richer set of alternatives to fund their activities. In addition, they rely increasingly on derivatives markets to hedge multiple sources of risk. This term introduces the main instruments available to modern businesses. It also explores how to value them and how to use them to make sound financial decisions.

Key topics include:

• real options
• forwards, futures, swaps and hedging
• convertible bonds
• dividend policy
• mergers, acquisitions and corporate restructuring
• raising capital.
  

You will gain an in-depth understanding of capital markets, corporate financing and the valuation of corporate liabilities such as bonds, options and equity. You will then examine hedging and the management of risk as well as important areas of real options, dividend policy, mergers and acquisitions, corporate restructuring, financial distress, the security issuance process, and long-term financial planning.