Advanced Financial Management
Subject Overview
Advanced Financial Management is the second Accounting & Finance elective, building on Financial Management with the strategic and advanced side of corporate finance. You'll cover financial strategy formulation and sources of finance (equity, debt, venture capital, private equity), risk and ethical issues in financial decision-making, advanced investment appraisal under capital rationing and uncertainty, and business valuation methods. The final unit covers corporate reconstruction, mergers and acquisitions, and business re-organisation. This is a 6-credit elective paper across 4 units, aimed at students who want to go deeper into corporate finance and M&A.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Financial strategy & sources of finance
Role of the senior financial adviser, financial strategy formulation, ratio analysis and gearing considerations, sources of finance — equity, debt, hybrids, lease finance, venture capital, business angel finance, private equity, asset securitisation
Unit 2: Risk, return & governance
Identifying business and financial risk (operational, reputational, political, economic, regulatory, fiscal), risk-return trade-off, ethical and governance issues, agency relationships, transaction cost theory, integrated reporting
Unit 3: Advanced investment appraisal & valuation
Capital rationing — single and multi-period, divisible and indivisible projects, sensitivity analysis, risk-adjusted discount rates, simulation and scenario analysis, market capitalisation, asset-based valuation, PE ratio, dividend valuation, discounted free cash flow
Unit 4: Corporate reconstruction, mergers & acquisitions
Financial and capital reconstruction schemes, reasons for and against mergers and acquisitions, legal and procedural aspects, valuation of M&A, reverse takeovers, business unbundling, divestment, spin-offs, management buy-outs, share repurchase