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.
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.
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.

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
Independent Study126
Teaching24
Total study time150

Resources & Reading list

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

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

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

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

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

Assessment

Formative

Peer assessment

Summative

MethodPercentage contribution
Assessment  (2 hours) 70%
Group Coursework  (4000 words) 30%

Repeat

MethodPercentage contribution
Assessment  (2 hours) 100%

Referral

MethodPercentage contribution
Assessment  (2 hours) 100%

Repeat Information

Repeat type: Internal & External

Costs

Costs associated with this module

Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.

In addition to this, students registered for this module typically also have to pay for:

Textbooks

Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase the core/recommended text as appropriate.

Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at www.calendar.soton.ac.uk.

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