Corporate Finance

Corporate Finance - Part 4 (2022)


This course consists of three modules. Module 1 describes the financial and strategic motives for M&A deals and it also examines the potential downsides of such deals.

Module 2 explains why a company might choose to pay out a dividend rather than keep the cash as retained earnings on the balance sheet. It also describes other methods through which companies can offer value or benefits to shareholders, such as share buybacks and how these differ to stock dividends and stock splits.

Module 3 explores the application of various corporate finance activities in practice. You will observe a situation where a New York-headquartered international company is seeking to expand its operations into the Australian market. As it does so, you will see the work undertaken by various members of the company’s corporate development team as they assess the expansion options available.


On completion of this course, you will be able to:
- Determine whether a proposed M&A deal is EPS accretive or dilutive
- Identify the key strategic reasons and motivations for companies to make acquisitions
- Recognise the potential downsides of M&A deals
- Identify the reasons why companies have different dividend policies
- Recognise the purpose of a share repurchase (stock buyback) program as well as the benefits and impact of such a program
- Distinguish between stock dividends and stock splits
- Identify how various corporate finance activities being applied in practice


Module 1: Mergers & Acquisitions (M&A) – Analysis
Topic 1: Financial Motives for M&A
Topic 2: Strategic Motives for M&A
Topic 3: Downsides to M&A

Module 2: Corporate Finance – Payout Policy
Topic 1: Payout Policy
Topic 2: Dividend Policy
Topic 3: Share Repurchase
Topic 4: Stock Dividends & Stock Splits

Module 3: Corporate Finance - Scenario


Relevant Subject
Type 6 - Advising on corporate finance
SFC:2.00, PWMA:2.00
Non-Member: HK$960
Chinese Securities Association of Hong Kong (HKCSA): HK$670
All Member: HK$640
Staff of Corporate Member: HK$640