Advanced Corporate Finance
Gold Coast, Australia
Area of Study
Corporate Studies, Finance
Taught In English
2201AFE, AND 2204AFE AND 2206AFE AND 2306AFE (Corporate Finance, AND Financial Institutions Management, Investment Analysis & Management AND Quantitative Methods for Business Finance & Economics)
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3 - 4
Recommended U.S. Quarter Units4 - 6
Hours & Credits
This course examines advanced aspects of corporate finance with an emphasis on the tools for practical application and the setting of strategy. Topics include the setting of firm objectives and governance, the management of corporate debt and equity and the setting of an optimal capital structure, the firm interactions with the market for corporate control, capital budgeting and the use of real options, financial distress and restructuring, optimal dividend policy and shareholder value, managerial remuneration and incentivisation, and ethics in corporate finance. Special attention is given to the increasing complexity of the actual business environment and departures from the assumptions of an ideal capital market.
You likely already appreciate that corporate finance is one of the most critical of firm functions. Financial managers face a vast array of financing alternatives and opportunities that, if used correctly, can increase firm value and decrease the risk exposure of firms for the benefit of shareholders and other stakeholders alike. If used poorly, these increasingly competitive, complex, and ruthless markets pose dire consequences for management and ultimately the continuation of the firm, as evidenced by recent global financial developments.
The successful financial managers of the future will be those that take advantage of these financial market opportunities using appropriate tools and knowledge and move them to the real world of corporate financial management. In this course, you will come across many concepts that you have may have already met in your earlier studies. However, in common with all introductory and intermediate finance courses, we geared these to a basic overview of essential finance theory and empirical evidence.
In this course, we cast a much more critical and increasingly detailed eye over most aspects of corporate finance theory, relate it to the most-recent real world evidence and research practice, and use this to help formulate policies and financial strategies to assist the corporate manager in maximizing firm value. In so doing, this course provides a cohesive and unified appreciation of the role and importance of corporate finance in the modern world.
On successful completion of this course, you will have acquired skills, knowledge and applications in the following areas: the theory and practice of corporate financial decision making and governance; the nature of risk and return in corporate finance, capital budgeting and the concept of real options, the determinants of capital structure and the optimal financial mix, internal and external investment behaviour, dividend policy and the return of value to shareholders, executive remuneration and incentivisation, and corporate finance ethics.
This course examines advanced aspects of the financial management of corporate issues with an emphasis on issues in financial planning and strategy. Topics include firm governance and the role of shareholders and stakeholders, the management of corporate debt and equity, dividend policy and strategies. Special attention is given to the increasing complexity of the business environment and departure from the assumptions of an ideal capital market.
Introductory topics in corporate finance may give students the impression that finance can be easily divided into various specialised topics, including capital budgeting, risk management and financial markets. However, all of these elements are important and interrelated elements in corporate finance and corporate decision-making. Only by integrating finance theory, complex financial market behaviour and corporate strategy can financial managers transfer their knowledge to the real world decision-making process and thereby benefit shareholders and other firm stakeholders.
This course is designed to develop skills that are of a practical nature and needed by financial managers in the corporate arena. The required outcomes focus on an understanding of the assumptions, models and precepts underlying established finance theory as it relates to corporate finance; knowledge of the trends and recent contributions to the empirical finance literature and its impact upon practical financial decisionmaking in a business context; and an appreciation of insights into topical issues within the business finance arena, from the perspective of financial controllership and wealth maximisation.
After successfully completing this course you should be able to:
1.Understand the theory and practical ambiguities underlying corporate financial objectives
2.Appreciate the role of return and risk in corporate finance
3.Realize the impact of financial markets on firm decisions and the interrelationships between firm investment, financing and dividend policy
4.Develop the skills necessary for internal and external investment decisions by firms
5.Formulate and implement corporate investment and financing strategy
6.Understand the importance of dividend policy and the means of returning value to shareholders
7.Develop techniques and skills appropriate to guiding executive remuneration and incentivisation
8.Engage in the management and promotion of firm performance and value
9.Appreciate the ethics involved in corporate financial behaviour
Workshop Papers-Weighted 10%/100
Case Study I-Weighted 10%/30
Case Study II-Weighted 10%/30
Case Study III-Weighted 10%/30
Final Exam-Weighted 60%/100
Courses and course hours of instruction are subject to change.
Eligibility for courses may be subject to a placement exam and/or pre-requisites.
Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.