The unit begins with bond and stock valuation concepts and the relationship between risk and return. It presents the Modigliani-Miller theory on capital structure, bankruptcy costs, agency problems, information asymmetry, the limitations of debt usage, and factors related to financial distress that can diminish firm value. The course also includes topics on efficient markets and behavioural finance, long-term financing, and capital raising. Additionally, it introduces options and warrants in the context of corporate finance.