Advanced Corporate Finance

(Lent Term)

Module tutors

Dr Shantanu Banerjee


This course builds on and extends the concepts covered in the basic financial management course. The major topics covered include capital budgeting, capital structure, corporate valuation, corporate restructuring, merger and acquisitions, dividend policies, and real option. The analytical tools and financial theories discussed in the course are brought together in practical settings through a comprehensive corporate finance analysis on a real company conducted on a group basis.

A key objective of the module is to demonstrate the link between those various decisions and areas. In particular, we will explore how the firm’s financing and investment policies interact with each other and how those decisions have implications for corporate valuation, mergers and acqusitions.

Texts and materials

The module will make use of a number of cases, academic articles and lecture notes. The main textbook for this course is:

Damodaran, Aswath, Corporate Finance: Theory and Practice, 2nd edition, John Wiley & Sons.


  • Risk and hurdle rates
  • Cash flows and capital budgeting
  • Corporate capital structure and the financing decision of firms
  • Payout policy
  • Mergers and acquisitions.
  • Valuation of corporate investments under uncertainty and real options


Coursework 25% of module mark and examination 75% of module mark.

Contact hours

Minimum of 22.5 hours in total.

For those interested in studying to become a Chartered Financial Analyst, it is worth noting that this module contributes to:

  • Corporate Finance at CFA levels I and II