The University of Southampton
Courses

MANG6022 Corporate Finance 1

Module Overview

In this module we begin by looking at the types and sources of finance for a company. Next we seek to understand the cost of capital and the major theories that guide us. Next comes sources of long-term finance: capital, debt and hybrid finance. Finally, we study Asset-Backed Securitisation and Covered Bonds which are newer sources of long-term finance.

Aims and Objectives

Module Aims

To gain a sound understanding of corporate finance from a banker’s perspective.

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • Understand companies and their sources of finance;
  • Understand present and future values;
  • Understand convertible bonds and their uses;
  • Understand capital structure and the associated cost of capital;
  • Understand the techniques of asset-backed securitisation.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • Numeracy skills are developed through exercises;
  • Communication skills are developed through class presentations and written Assignment;
  • Analytical skills are developed through case studies and assignment and through the lecture programme.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • Analyse critically theoretical material and case study evidence on the basis of an informed knowledge;
  • Develop logical and concise arguments and engage in independent enquiry grounded in appropriate source material.

Syllabus

• Topic 1: An introduction to Business Finance and Interest rate mathematics • Topic 2: Cost of Capital and Capital structure • Topic 3: Sources of long-term finance • Topic 4: Convertible Bonds • Topic 5: Asset Backed Securitisation

Learning and Teaching

Teaching and learning methods

Teaching methods include • 24 contact hours over a six-week period. • Lectures are used to introduce and develop knowledge of individual topics. • Lectures may involve formal lecture using OHP, case studies, with the remaining time being devoted to class exercises. Learning activities include Six 4-hour lectures with the remaining time being devoted to class exercises

TypeHours
Teaching24
Independent Study126
Total study time150

Resources & Reading list

Pike, R. and Neale, B (2006). Corporate Finance and Investment (decisions and strategies). 

Watson, D. and Head, A. (2010). Corporate Finance Principles and Practices. 

Brealey, R.A., Myers, S.C. and Allen, F (2011). Principles of Corporate Finance. 

Berk, J. and DeMarzo, P (2013). Corporate Finance. 

Stone, C.A. and Zissu, A (2012). The Securitization Markets Handbook: Structures and Dynamics of Mortgage- and Asset- backed Securities. 

Moles, P., Parrino, R. and Kidwell, D (2011). Corporate Finance. 

Brealey, R. Myers, S. and Allen, F (2013). Principles of Corporate Finance. 

Assessment

Formative

Coursework

Summative

MethodPercentage contribution
Examination  (2 hours) 70%
Group Assignment  (4000 words) 30%

Repeat

MethodPercentage contribution
Examination  (2 hours) 100%

Referral

MethodPercentage contribution
Examination  (2 hours) 100%
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