The University of Southampton
Courses

MANG6194 Corporate Finance

Module Overview

This module aims to provide students with an understanding of stocks, bonds and derivatives, the main capital raising instruments of our financial markets and to put those products in their modern, global context by examining the role of stakeholders in a variety of different economies. Emphasis will be placed on the use of these techniques in the current financial market environment.

Aims and Objectives

Module Aims

The aim of this module is to introduce the core concepts and key topic areas of corporate finance. It considers mostly the financing and investment aspects of managing businesses. Students will be exposed to both the theories of corporate finance as well as their applications using numerical examples and mini case studies. Thus, students are expected to demonstrate an understanding of the theories, apply the theories as well as critically assess them.

Learning Outcomes

Knowledge and Understanding

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

  • The theory, practice and metrics of corporate finance.
  • The valuation of enterprises and financial assets.
  • The major investment, financing and dividend decisions of modern corporations.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • Master skills of conceptually identifying and numerically solving financial problems related to business decisions in both hypothetical and realistic contexts.
  • The theory, practice and metrics of corporate finance.
  • The valuation of enterprises and financial assets.
  • The major investment, financing and dividend decisions of modern corporations.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • Demonstrate skills in written and oral communication regarding the analysis of the contemporary financial market environment.

Syllabus

- Introduction to Corporate Finance - The Objective Function in Corporate Finance - Present Value and Related Metrics - Understanding Financial Statements - Risk and Return – Theory and Practice - Capital Budgeting - Working Capital - Capital Structure - Market Efficiency: Lessons for Corporate Finance - Dividend Policy - Valuation: Basics and Case Studies - Acquisitions and Takeovers - International Finance - Applications of Option Pricing in Corporate Finance

Learning and Teaching

Teaching and learning methods

The module will be taught by a mixture of methods ranging from guided Background reading, lectures, group work and the exploration of mini case studies. The lecturer will draw heavily on financial market developments current at the time of the course and through class discussions encourage reflection on the market. Learning activities include: - Group assignment - Private study - Written exam Internationalisation: Whilst the course’s primary emphasis will be conducted within the framework of Anglo American forms of governance, it will also emphasise the different weightings given to stakeholders in European and East Asian economies and how this impacts on fundamental financial metrics.

TypeHours
Independent Study70
Teaching30
Total study time100

Resources & Reading list

Brealey and Myers. Principles of Corporate Finance. 

Course Material. In addition to the course handouts, some material will be posted on Blackboard and or other sites. You will be told of these links by Blackboard’s email system.

Brealey and Myers. Fundamentals of Corporate Finance. 

Assessment

Formative

Set exercises - non-exam

Summative

MethodPercentage contribution
Examination  (3 hours) 100%

Repeat

MethodPercentage contribution
Examination  (3 hours) 100%

Referral

MethodPercentage contribution
Examination  (3 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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