IB9LM-15 Corporate Finance
Introductory description
The module offers an introduction to corporate finance, which is the study dealing with the various decisions that financial managers are required to make: (i) capital budgeting decisions; (ii) financing decisions; (iii) payout decisions. For each of these decision categories, the module provides you with in-depth knowledge including institutional background, economic theory, and empirical facts, along with real-world example.
Module aims
The module aims to provide students with an introduction to the principles of Corporate Finance and to illustrate how the basic tools and techniques of modern finance theory can be applied to analyse and improve the investment and financing decisions of the firm.
Outline syllabus
This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.
Indicative syllabus:
Introduction
Financial calculus
Financial markets
Valuing bonds
Valuing stocks
Portfolio choice and diversification
The capital asset pricing model
Capital budgeting
NPV in action
Market efficiency
Special Topic 1: Initial public offerings Financing and capital structure
Payout policy
Corporate risk management
Special Topic 2: Mergers and acquisitions.
Learning outcomes
By the end of the module, students should be able to:
- Demonstrate a thorough knowledge of mainstream theories, models, and concepts related to Corporate Finance and the ability to implement them in order to solve financial problems.
- Critically evaluate different techniques for appraising capital projects.
- Identify the optimum combination of debt and equity securities in a firm's capital structure.
Indicative reading list
Brealey, R.A., Myers, S.C. and Allen, F. (2011) Principles of Corporate Finance (10th global edn) Boston, Matts; London: McGraw-Hill Irwin International.
Subject specific skills
Evaluate investment opportunities using the Net Present Value method.
Use discounted cash flow techniques to value bonds and equities.
Discuss the key issues involved in capital budgeting decisions in the presence of taxes, inflation etc.
Explain models of capital structure and payout policy in the presence of market imperfections (e.g. taxes).
Explain corporate risk management issues and tools.
Transferable skills
Demonstrate enhanced IT and numerical skills, including the use of Excel for financial calculations.
Write in an academically appropriate way.
Study time
| Type | Required |
|---|---|
| Other activity | 27 hours (18%) |
| Private study | 49 hours (33%) |
| Assessment | 74 hours (49%) |
| Total | 150 hours |
Private study description
49 hours on seminar preparation and pre-reading
Other activity description
This module will be split as two hours face-to-face workshops and one online lecture hour per week. The lecture hour may be live, or may be prerecorded, or as asynchronous tasks with either online or face-to-face support
Costs
No further costs have been identified for this module.
You do not need to pass all assessment components to pass the module.
Assessment group D2
| Weighting | Study time | Eligible for self-certification | |
|---|---|---|---|
Assessment component |
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| Group Case Analysis | 20% | 15 hours | No |
Reassessment component is the same |
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Assessment component |
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| In-person Examination | 80% | 59 hours | No |
Reassessment component is the same |
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Feedback on assessment
Assessments are graded using standard University Postgraduate Marking Criteria and written feedback is provided. Overall percentage marks are awarded for examination performance and general examination feedback is provided to the cohort.
Courses
This module is Optional for:
- Year 1 of TIBS-N1F2 Postgraduate Taught Business with Consulting
- Year 1 of TIBS-N1F3 Postgraduate Taught Business with Marketing
- Year 1 of TIBS-N1QG Postgraduate Taught Business with Operations Management
- Year 1 of TIBS-N1F4 Postgraduate Taught International Business (MINT)
- Year 1 of TIBS-N2N3 Postgraduate Taught Management