Corporate Finance 2

Learning Outcomes

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• Demonstrate deep understanding of theoretical material and the channels via which the theory supports case study evidence.
• Demonstrate qualitative and quantitative skills in evaluating corporate investments.

Knowledge and Understanding

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

• The time value of money (present and future values of cash flows and series of cash flows).
• Dividend Policy (defining dividends and their different variations, introducing the Modigliani and Miller dividend irrelevance theory and the Gordon Growth Model).
• Investment Appraisal Techniques (Net Present Value, Internal Rate of Return, Payback Period, etc.).
• Real Options Valuation (focusing on the binomial lattice and the Black-Scholes formula estimation methods).
• Corporate Governance (analysing concepts about corporations, define financial & real values and discussing the agency problem and its remedies).
• Mergers and Acquisitions (define mergers & acquisitions (M&A), analyse the drivers of M&A, overview basic concepts regarding M&A).

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• Manage and prioritise workload when analysing complex contemporary issues.
• Develop numeracy and analytical skills via solving exercises on the taught material.

1.Time Value of Money

2.Investment Appraisal

3.The Real Options Approach

4.Corporate Governance

5.Dividend Policy

6.Mergers & Acquisitions

Teaching and learning methods

This module will involve 24 contact hours, taught in blocks (lectures) of 2 hours each. Each lecture will start by stating the learning outcomes (LOs). The LOs will be ranked from the essential to advanced understanding of the lecture materials.

Resources & Reading list

Textbooks

Lumby, S., and Jones, C. (2019). Corporate Finance: Theory and Practice. Cengage Learning EMEA.

Brealey, R.A., Myers, S.C., Allen, F (2019). Principles of Corporate Finance. McGraw-Hill.

Brigham, E., Ehrhardt, M., and Fox (2019). Financial Management: Theory and Practice. Cengage Learning EMEA.

Watson, D., and Head, A (2016). Corporate Finance: Principles and Practice. Pearson Education.

Formative

This is how we’ll give you feedback as you are learning. It is not a formal test or exam.

Summative

This is how we’ll formally assess what you have learned in this module.

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.

Repeat Information

Repeat type: Internal & External