IB9LM-15 Corporate Finance
Introductory description
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.
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.
- 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.
- Critically evaluate different techniques for appraising capital projects.
Indicative reading list
Brealey, R.A.; Myers, S.C., Allen, F. and Edmans, A. (2022) Principles of Corporate Finance (14th 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.
Identify the optimum combination of debt and equity securities in a firm’s capital structure.
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 |
|---|---|
| Lectures | 9 sessions of 1 hour (6%) |
| Practical classes | 9 sessions of 2 hours (12%) |
| Private study | 49 hours (33%) |
| Assessment | 74 hours (49%) |
| Total | 150 hours |
Private study description
49 hours on seminar preparation and pre-reading
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 D3
| Weighting | Study time | Eligible for self-certification | |
|---|---|---|---|
Assessment component |
|||
| Group Case Analysis | 20% | 15 hours | No |
|
2000 words |
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Reassessment component |
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| Case study analysis | Yes (extension) | ||
Assessment component |
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| Class test 1 | 40% | 30 hours | No |
|
1 hr |
|||
Reassessment component is the same |
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Assessment component |
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| Class test 2 | 40% | 29 hours | Yes (extension) |
|
1 hr |
|||
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.
There is currently no information about the courses for which this module is core or optional.