|Module Convenor: Bob Berry|
The module examines the ethical and practical justifications for the idea that companies should operate in the interests of shareholders and also the counter arguments in favour of a stakeholder perspective. The module then deals in turn with the major financial decisions made in organisations (capital budgeting, capital structure, dividends, mergers, working capital). Decisions are analysed first in the context of well functioning capital markets. Capital market imperfections and behavioural biases on the part of managers and investors are then considered.
The module aims to emphasise the importance of answering the question "In whose interests should organisations be run?" before beginning the process of financial decision making. The module also aims to develop the key skills of forecasting and valuing risky cash flows, and the ability to apply these skills in financial decision making contexts.
2 Hour Examination (70%); 3,000 Word Essay (30%)