The module seeks to provide students with a basic understanding of the principles of corporate finance theory. It begins with a discussion of the relationship between equity and debt and Modigliani and Miller’s famous indifferences theorem. It introduces students to the concepts of the time value of money and net present value, risk and return, and the valuation of equity and debt securities. The remainder of the course analyses the way these principles affect the legal structure of equity and debt finance. The focus will be on the legal structures as shaped by the underlying economic rationales. In the course of the module, students will be exposed to complex financing structures, such as securitization, collateralized debt obligations and the hedging of exposures through derivatives. Overall, students will be equipped with a working knowledge of the basic principles of finance and their relevance for corporate law. This is essential for anyone who wants to pursue a career in international commercial and financial law.
Dr Michael Schillig
Learning and teaching methods vary but may include watching video content, engaging in discussion forums, taking part in live chat/webinar sessions, self-directed activities, doing quizzes or working through interactive content designed to stimulate your thoughts and help you to apply knowledge.
You will be expected to undertake approximately 20 hours of study per week which may typically be broken down as follows:
- Directed study - 2 (web content material including recorded video, text, graphics)
- Other activity - 2 (1 hour live seminar and 1 hour of discussion board)
- Self-directed learning and assessment work - 16 (including completing set tasks and reading, research, revision)
Module assessment - more information
A small percentage of your final module mark will be based on your participation in discussion forums, unless stated otherwise. The remaining percentage will typically be assessed by essay.