Capital & Investment - Main Topics of Study

This is not available as a Single Subject.

Main Topics of Study:

  • Sources and employment of capital and debt
  • The concept of equity and its significance in the development of the firm
  • The short-term and long-term roles of capital and debt in strategic planning
  • Investment appraisal and decision-making
  • Analysis and calculation of risk and reward
  • The importance of gearing and the gearing ratio
  • Return on investment and the ROI ratio
  • Net present value
  • Capital structure
  • Maximising firm value versus maximising shareholder value
  • Debt versus equity
  • Dividends and share repurchases
  • The significance of capital and debt and their effect on cash flow and the balance sheet

Recommended Reading

Indicative Reading for this Unit:

Main Text:
Corporate Finance: 2nd European edition 2013, Hillier, D., Ross, S., Westerfield, R., Jaffe, J. and Jordan, B., McGraw Hill

Alternative Texts and Further Reading:

Business Finance: Theory and Practice. 9th edition, McLaney, E., 2011, Harlow: Prentice Hall